Pricing your rental properties can be a challenge. You want to get the most ROI, but you also need to be able to attract the right residents and compete with other rentals on the market. Asking too much can mean that your properties sit empty and you aren’t earning any revenue. Determining a fair price requires some insight into the market, which is why Deca Property Management offers owners a free rental property analysis. With the right information, you can easily establish the right price for all your St. Louis, MO rental properties and maximize your ROI.
Custom Rental Property Analysis For Your Property
Deca offers a free property assessment so that you can get an accurate snapshot of what similar properties in the neighborhood have been renting for over the past few months. Armed with this information, you can avoid asking too little or overpricing your property. You don’t want to leave money on the table or end up with a handful of applications that simply don’t fit the bill. Understanding the market is the best way to attract qualified applicants who will pay rent on time and take care of your property while also turning a profit.
Maximizing ROI on Rental Property Requires Analyzing Accurate Information
As an owner, one of your main goals is to earn passive income. Rental properties can be a profitable investment, but exactly how much of a profit margin you will enjoy depends on your pricing strategy. Real estate is a long-term investment which means that you will need to take into account the cost of your mortgage payment along with other operating expenses, including maintenance, repairs, taxes, and insurance. You want to be able to cover expenses while also earning a profit from rental income. Not every property will be a good rental option. A lot depends on the neighborhood and demand.
Neighborhood Specific Rental Market Analysis
A rental market analysis starts with getting to know the neighborhood. Whether you are renting residential or commercial space, location and proximity to certain amenities will affect the price of the property. Oftentimes, residents are looking for easy access to major highways and public transportation, a high walkability score, a good school system, and plenty of businesses open nearby. Any or all of these factors will allow you to successfully ask for a higher monthly rent.
The square footage and overall condition of the property will also be taken into account. When it comes to residential homes, factors like the number of bedrooms and bathrooms and lot size are important. From there, we will find comparable properties and use that information to make recommendations about rental pricing. With our free property assessment, you can feel confident about your rental pricing and avoid having empty properties. This is just one way that Deca Property Management works to support property owners.
Factors that Come in to Play When Trying to Estimate Rental Value
One way to estimate rental value is to find comparable properties and calculate the average cost per square foot. With a little research, we can identify similar properties based on location, square footage, etc., and determine an average price. Keep in mind that certain amenities, such as a pool or a garage will translate into a higher rental rate. In addition, neighborhoods with a high vacancy rate may require property owners to reduce rental prices. Deca can conduct this research for you and determine a competitive rate that will help you to meet your investment goals.
The Importance of Rental Property Cash Flow Analysis
Hopefully, you have been able to secure a low interest rate on your mortgage and other costs can be kept to a minimum. Once you understand the carrying costs associated with a property and average rents in the area, you can get a more accurate view of how to price the property to ensure a positive cash flow. Basically, you want a healthy cash-on-cash flow ratio.
Receive a Free No-Obligation Real Estate Investment Property Analysis Today
If you are thinking about investing in a property that will then be used as a rental, it is essential to conduct a property analysis. Going with your gut may be a good start, but you don’t want to make a purchase and then crunch the numbers only to find out that it will be difficult to secure residents at a rental price above the overall carrying costs. Even if you have been watching the market, a lot can change in a few months. St. Louis is constantly evolving and new neighborhoods are emerging as the next big thing. Staying on top of these trends will help property owners make smart decisions.
Deca can help you meet your investment goals by helping to design a customized plan. Our experts will spend time getting to know you and what you want to achieve with and through your real estate investments. From there, we will work with you to identify ideal properties that will allow you to invest in the real estate market and provide affordable rentals to individuals and businesses.
At Deca, we have been working with real estate investors in the St. Louis area for years. We have an insider’s view of the local markets and we continue to conduct the necessary research to help every owner price their investment property appropriately. Take advantage of our free property analysis and assessment to better understand the potential for your investment and how you can enjoy the best ROI. Call today to learn more about our services and how we can help with everything from property assessments to rental agreements and regular maintenance.