About 35% of Neenah housing is renter-occupied. With a population of nearly 30,000, that means there are over 10,000 people looking for a Neenah rental property.
Yet, some property owners are failing to attract tenants at all. Others are finding tenants year after year but struggling with tenant retention. In both cases, these investors aren't seeing the ROI they should.
Rental analysis involves a combination of market research and expert predictions. The goal is to charge a monthly rent price that turns a profit and attracts renters.
Why is rental analysis exactly what you need to jumpstart your ROI? Read on to find out.
Assessing Your Neighborhood
A new landlord may look as far as the average cost of rent in Neenah and set their monthly rent in that zone. The problem with averages is that they reflect a wide range of costs from one neighborhood to the next. While some renters may be paying that average cost, many more are paying above or below the average.
A true rental analysis looks at the cost of rent based on neighborhoods. For example, the average is likely below your property's true rental value if your home is between Rainbow Beach and Adella Beach. If, on the other hand, your property is in Sunrise Bay, charging the average is probably out-pricing your potential renters.
Evaluating Your Amenities
Location is key when you're determining the value of your rental property, but it isn't everything. Certain amenities are going to increase the desirability of your property, allowing you to charge more. For example, if you offer in-unit laundry or an on-site gym, you can factor in both the cost to operate these amenities and their desirability into your monthly rent.
The same goes for surrounding amenities. Most renters are willing to pay more for a property if it grants them easy access to things like public transportation, shopping, and entertainment. When the cost of renting your unit accurately reflects the benefits of living in your unit, rental collection gets a little easier.
Determining Your Target Market
Ultimately, rental analysis improves ROI because it ensures that you're charging the most possible while attracting tenants. It can also determine more than just the amount of rent you can charge.
Experienced property managers will also consider your target market while conducting rental analysis. This can include demographics like young working professionals, students, and families. By knowing your target market, you can put together marketing campaigns that reach the appropriate audience.
Get Neenah Rental Analysis with PMI Fox Valley
If you're struggling to profit off your rental property, it's time to go back to the drawing board. Expert rental analysis by a property management company can determine how much money you should be making and how to start making it.
PMI Fox Valley offers a wide variety of services to real estate investors. We start by helping investors determine if renting or selling will yield the biggest profit and continue with property management services and more. Contact us today to get started.