Hello Ashland! We at Asurent Property Management are excited to be featured in the LocalsGuide, and more excited to be able to serve our community and deliver an amazing service to the property owners and investors in Ashland.
If you own rental properties, you could be losing up to 40%, or more, of the potential income that should be in your pockets. And I’ll bet that up until now, you had no idea.
Over the next few articles we are going to share with you exactly how to tell if you are getting the full potential out of your properties, and if not, how to re-claim the cash flow that is leaking from your properties.
Tip #1. Most investors don’t know how to correctly price their rental rate and it costs them hundreds or thousands every month. The first place to begin is to assess the condition of your home compared to the rental comparisons. You want to rate your rental on a scale of 1 to 5 on the following areas: exterior/interior condition, attractiveness and location to local attractions. Knowing the local landscape and the desirability to live just a half mile closer to downtown, such as in Ashland, can sway the rental rate by as much as 30%. Next, what is the overall condition of your rental compared to others? Bathrooms/kitchen updated? Carpets new/old? These items definitely affect the rental rate analysis.
Next, it is time to find your comparables. First off, you only want comparables with the same number of bedrooms and same number of stories, and if possible rentals that are within 0.5 miles of yours. Most people will look on Craigslist and stop there, resulting in under valued comps. You should use the map function to find the comparables that are closest in proximity to yours. Next, you will also want to use the large aggregator sites like Zillow and Trulia. We utilize the map functionality similar to craigslist.
Your goal is to find 5 comparables that meet the previous rules that we discussed. Next, rank each one of the comparables on the same scale that you performed on your rentals. Compare interior/exterior/location, etc. Account for the rankings effect on value compared to your property. Calculate what the dollar per square feet is for each comparable. Apply a certain amount of reduction or additional amount that you will apply to the comparable for each factor that is different than yours. Then average the dollar per square feet for your comparables and arrive at a final dollar per square feet for your rental.
If you don’t feel comfortable implementing Tip #1 on your own, that’s OK—the team at Asurent Property Management can help! Remember, these secrets are the key to increasing rental returns and enhancing your cash flow.