Maryland Rental Market Analysis
When you’re investing in a rental property, you want to make sure not only that the property is a good investment, but also that the market is stable. You need to buy property in a market that has a high demand for rentals, and that’s not always something you can easily see. Rental market analysis takes the experience of a professional property management company, like Tidewater Property Management, and puts it to work for you.
If you’re considering new investments for your rental portfolio, don’t go into the process blind. Reach out to Tidewater Property Management for rental market analysis services in Maryland and Washington, DC. Call (443) 548-0191 to learn more.
What Is Rental Market Analysis?
Rental property analysis is a tool that will determine potential income from a rental property. It can be used on existing properties or new purchases, depending on the needs of your portfolio. At Tidewater Property Management, we perform five steps to help assess rental market demand. These include:
- Analyzing the neighborhood – First, we will look at the property’s location and what makes it more or less appealing as a rental property. Infrastructure concerns, school quality, and access to employment options all come into play here. The overall condition of the neighborhood is also considered, as that will attract or detract from the property’s appeal to renters.
- Check comparable properties – Next, we will pull the value of comparable rental properties. These “comps” show what properties would likely rent for in the area. It’s important to choose properties of a similar size and in a similar location, when possible.
- Determine rental price per square foot – Comparing the rental price per square foot can help us compare your property to others in the area, even if we can’t find comps that are extremely similar.
- Consider amenities – Some amenities will drive up the price of your rental property. For instance, if you have a pool at the complex or a fitness center, you can charge a higher rent than a property that lacks these amenities.
- Check available sales inventory – Sales inventory has a direct impact on rental demand. If there are many properties for sale at low prices, people may opt to buy instead of rent, and this can drive down your property’s value.
When Rental Market Analysis Is Important
Rental market analysis is critical any time you have rental property. It will help you set an appropriate price for your rental, so you can attract tenants instead of driving them away. Sometimes, the price found through analysis is less than what you wanted to get for the property, but pricing it well will help you rent it, rather than leading to a scenario where you can’t find renters. If you’re considering a new rental property purchase, rental market analysis helps you know if you can get the rental price for it that you need to make a profit.
If you are in the rental property market in Maryland or Washington, DC, rental market analysis is critical to ensuring you are charging a fair price for your properties. Tidewater Property Management can assist. Call (443) 548-0191 or reach out online to schedule rental property analysis for your properties and investments.