Are you struggling to find renters in this tough Fairfield rental market? Before you start investing in major upgrades that you hope will attract tenants, it's time to go back to the drawing board.
As an independent landlord, it's easy to lose sight of how much you've increased rent over the years. After all, doesn't rent increase everywhere regardless of property value?
If your applicant pool is dwindling and your tenant turnover rate is high, start with a rental analysis. While rent increases are normal, they're not always in your best interest. Read on for our landlord advice on proper rental analysis procedures.
Assess Your Property
First, start with an honest assessment of your property. Perform a property inspection to evaluate the condition of your rental unit. Then, take note of:
- Square footage
- Number of bedrooms and bathrooms
- Property age
- Recent upgrades and maintenance
- Needed upgrades and maintenance
- Private and shared amenities (e.g., laundry machines, yard space, pools, etc.)
Remember that while properties tend to appreciate over time, your property value won't increase unless you've kept up with preventative and routine maintenance. In other words, the desire to rent your property will depend on its condition.
Look at Neighborhood Trends
Once you've assessed your rental property as it is currently, it's time to take a wider look at the neighborhood. It's important that you don't over or underprice your rent based on the location of your rental property.
Get a sense of your competition by looking at properties in your neighborhood that resemble your own. Narrow down your search based on things like square footage and amenities.
You should also consider how close your investment property is to desirable neighborhood features like grocery stores, public transportation hubs, and restaurants. Renters are often willing to pay more to live in walkable areas with easy access to necessities, work, and entertainment.
Make Smart Upgrades
What if your rental analysis leaves you feeling disappointed as a real estate investor? If you're hoping for a bigger profit, you're going to need to start making smarter upgrades.
Rather than making changes as you see fit, start by looking at what renters really want. At the top of the list are:
- Central air
- In-unit washers and dryers
- Access to high-speed internet
- Soundproof walls (for multi-family units, specifically)
While a luxury kitchen or spa-like bathroom is sure to draw attention, these kinds of projects are not as valuable to renters as they are to buyers. Depending on where your property is located, they can even over-value your property.
Call PMI for Better Fairfield Rental Analysis
Investing in real estate is a great way to build wealth in the long-term, but it isn't a foolproof cash-grab. If you're struggling to keep your rental property occupied, it's time to perform a rental analysis and see what it's actually worth.
PMI is proud to offer free rental analysis to help Fairfield property owners maximize their rental income. We also offer a customizable suite of property management services, from tenant screening to maintenance oversight. Start with your free rental analysis and stick around to find out how else we can help.
