Operations
SPONSORED CONTENT Raise the Rent? KNOW YOUR RENT AND HOW TO EVALUATE ADJUSTMENTS—BEFORE YOU PURCHASE.
REAL PROPERTY MANAGEMENT
A s a rental real estate investor, rental rates is essential to long-term profitability. In fact, the rental rate should be one of the key calculations you make before buying an investment property. It’s also important to re-evaluate your rental rate regularly to ensure it stays aligned with the local market. Without knowing how to evaluate the local rental market and set accurate this knowledge, you risk vacancies, unhappy tenants, and lost income. With so much at stake, it’s worth learning how to calculate accurate rental rates and handle rent increases like a pro. Delegating these responsibilities to a professional property management service, such as Real Property Management, can
2. CALCULATE RENTAL PRICE PER SQUARE FOOT. Divide the rental price by the property’s habitable square footage for each comparable. 3. FIND THE AVERAGE. Add the per- square-foot amounts together, then divide by the number of properties. 4. APPLY TO YOUR PROPERTY. Multiply your property’s square footage by this average to estimate your rental rate. Your evaluation isn’t complete until you adjust for amenities. These include both community amenities (parks, transit access, proximity to downtown) and property-specific amenities (technology upgrades, a pool, or included services such as landscape
reduce stress, ensure accurate pricing, and help you avoid lost rental income.
EVALUATING YOUR RENTAL RATES
One of the best ways to evaluate your rental rates is to complete a rental market analysis. This involves calculating the average rent price per square foot for similar rentals in your area. 1. FIND COMPARABLES. Locate three to five rental properties in your neighborhood that are similar in size, age, condition, and number of bedrooms and bathrooms. You can find these through online searches (such as Zillow) or local rental listings.
8 | think realty magazine :: december - january 2026
Made with FlippingBook Online newsletter