According to the US Census Bureau, the national rental vacancy rate was 6.4% during the first quarter of 2023, which is almost a full percent higher than it was in 2022. This increase in vacancies is largely due to inflationary rent increases.
If you've got a vacant rental property, one way to ensure it doesn't stay that way is by conducting a rental analysis on the property.
Most property managers are happy to conduct a free rental analysis as a courtesy to prospective clients. Keep reading to find out why you should take them up on their offer.
1. A Rental Analysis Helps You Cover Your Expenses
A free rental analysis will give you a ballpark figure when it comes to what you can charge for rent in Orlando. This will help you predict your potential earnings based on the expenses associated with your investment property.
These may include:
- Mortgage payments
- Utilities
- Property taxes
- Routine maintenance
- Landscaping and lawn care
- Property management fees
An experienced property manager will help you calculate a rental rate that is sufficient to cover your expenses without deterring potential tenants.
2. A Rental Market Analysis Helps You Attract More Tenants
No landlord wants to experience extended vacancies at their property. Even a single month without income from your property can cost you thousands of dollars in holding costs.
The more you charge for rent, the fewer people can afford to rent your property. So, it makes sense to set as low a rent as possible to attract more potential tenants.
By comparing your investment property with others in the area, you can come up with a fair rent price. When you take other properties into account, you know that your prices are correct for the relevant neighborhood.
When you charge too little rent, you can attract a lot more unqualified tenant applications, so you'll need to be extra vigilant during the tenant screening process. Setting your rent too high means fewer applications overall.
3. A Rental Property Analysis Helps You Keep Your Tenants for Longer
Losing a good tenant can be devastating for an investment property owner. Not only will you need to go through the arduous and risky tenant screening process again, but your property will stand vacant in the meantime.
When you charge a reasonable rental for your property, tenants are more likely to sign a multi-year lease. This helps you have guaranteed income from your property for the foreseeable future.
Annual rent increases are inevitable, but they can cause you to lose tenants. So, it's important to conduct another rental property analysis so you can implement increases in line with the current trends.
Get Your Free Rental Analysis Today
From that first free rental analysis onward, a property management firm can help you with every aspect of managing a rental property.
We can help you market your property, screen tenants, collect rent, and oversee routine maintenance on your investment property. All these things contribute to keeping your tenants content and in place for as long as possible, ensuring you enjoy a reliable income from your rental home.
Get in touch today for assistance with all your rental property management needs in Orlando.
