Updated May 3, 2022.
It's not a guessing game. When it's time to set the price on your houses for rent in Georgia, "choosing" a price that sounds good isn't the best way to make the most money or improve your ROI.
You might have a price in mind that seems prestigious or is a "goal" you've always had for your rental house. However, if the price isn't the ideal monthly rent, you'll lose money on your investment—one way or another.
When the price is too high, renters won't pay that much to live in your Georgia property. Your rental home sits empty for weeks (or months) and you lose money on the out-of-pocket expenses that come from a vacant investment home. However, if the price is too low, you lose money every month and risk not having the cash to cover your costs--even when your resident pays the rent on time!
How can real estate investors determine the ideal monthly rent? Follow these tips from our expert Renters Warehouse Atlanta property management team!
Analysis = Insights
If you can't rely on a "best guess" to ensure your monthly rental income is enough to grow long-term wealth, how can you know how to set the right price? Georgia real estate investors must take the time to conduct rental market analysis to determine the ideal monthly rent for every property in their portfolios.
No two rental properties are the same, and no two rental prices should be the same—without sufficient analysis to confirm the best amount. A portfolio full of rentals with high rental prices won't do you any good if no one is willing to pay that much for your properties.
Rental market analysis is well worth the effort to price your rental home competitively and attract your best potential residents to make the most money from your investments!
What is Rental Market Analysis?
Conducting a market analysis is a great choice. This analysis helps investors understand the local rental market and set a price that reflects what renters are willing to pay for properties similar to your own. A comprehensive analysis includes many components that give you an accurate picture of what renters want in a home, competitive pricing, and an optimal rental amount that covers property expenses while also generating profit.
What Should Your Analysis Include?
Once you set up a process for rental analysis, it's a smart idea to apply it to your existing houses for rent in Georgia and any new properties you add to your Georgia investment property portfolio. Reviewing current numbers once a year or when it's time to renew a lease also keeps your properties competitive and accurately priced for the market.
Make sure your analysis includes insight into:
The number of rental homes in your market
Of those rentals, how many are single-family (SFR) vs. multi-family (MFR)
How many rental homes are vacant vs. occupied
The average rent amount per square foot in your Georgia market
The average application fee in your market
The average number of days a property stays on the market in your area
A thorough analysis also evaluates the neighborhood, compares similar properties to your rentals, calculates the price per square foot using comps, and adjusts the "going rate" according to the amenities you offer in each property.
Don't Let Research Overwhelm You!
If you're not sure where to start in order to gather this information or what to do with it, don't be overwhelmed! A local property management company has access to all of the critical information you need to determine the best monthly price for your houses for rent in Georgia. We'll also walk you through the process of reviewing the information, making calculations, and arriving at the ideal rental amount for your properties.
With the best monthly rent set for each of your properties, you'll soon see the benefits of performing a thorough market analysis before assigning a price for each property. The best price attracts quality renters who pay the rent on time every month. When you enjoy the optimal rent, your long-term income potential grows!
Set the Best Rental Rate with Expert Georgia Property Management
The right property manager already knows the market and will help you set the "Goldilocks" rate for your investment property—not too high, not too low, but just right!
The real estate agents and property managers of Renters Warehouse Atlanta have everything you need to evaluate the rental market and target the best monthly rents for your houses for rent in Georgia. Our agents speak ROI (Return On Investment)! We look at your property as your investment and that drives how we can make the most of it for you.
The "number" of your rental's price doesn't matter to us. The best rental price that helps you achieve your financial goals is what does matter when you choose our team to manage your properties. Get to know us with a free copy of our Perfect Property Listing Checklist!