In this complex world of millions of options and tough decisions it’s nice to come across a no-brainer every now and then. It’s like when you go to your favorite lunch place and they tell you the sandwich you want to order is on special and you can get it for a cheaper price and it comes with a side and a drink included. I love those moments. Sometimes I’ll say out loud “why wouldn’t I do this?” It’s an easy decision.
This is what a professional rental market analysis is. It’s an absolute no-brainer. For those of you who are new to the world of property management, you may be wondering what a professional rental market analysis is.
A market analysis is when a professional property manager will come over to your investment property and give it a brief visual inspection. They’ll be looking for things like maintenance issues, carpet wear and tear, amenities, etc. After looking through the home, asking questions about the history, and then looking at what other similar properties are renting for in the area they’ll give you an estimate of how much your property will rent for.
Why get a rental market analysis?
Professional property managers know the rental units in your city. They typically manage hundreds of rental units and have been doing it for years. They know what rents quickly and what doesn’t.
When you have a rental unit you want to be able to maximize your investment. At Hignell Property Management, we’ve had owners who come into our office and want us to take over management on their investment property, but we come to find out they haven’t raised rents in 5 years and their rents are about $300 dollars under market! That’s a lot of money on the table. With a professional property manager giving you an estimate your chances of being under market go way down.
An analysis also lets you get an objective second pair of eyes on the unit. As humans, we adapt and grow accustomed to things. Whether it’s that funky smell in your house, the tired curtains, or that stain on your carpet, sometimes we grow so accustomed to the blemishes in our rental we don’t see them anymore. They have become normal. As soon as you get a professional in there they’ll pick up on all of that. Not only will they notice, but they have seen it 100 times before and will have suggestions on how to fix it.
Why would a property manager give you a free rental market analysis?
Honestly, it’s because they want to manage your rental property. They want your business, but they also want to be helpful. I’ve seen many rental market analysis and typically they turn into management contracts. Why? Because even though some owners may take up property managers on a market rental analysis without any intention of giving them a management contract, they typically learn a thing or two during the walk through.
Successfully managing a property isn’t easy. It takes a lot of skill and wisdom in decision making. It’s something that you need to have a firm understanding of, and typically, when you listen to a professional property manager you get the sense that they know what they’re talking about. When you spend time with a property manager who knows what they’re talking about you can get the sense that they will take good care of your property, and save you a lot of time and stress. This helps owners see the benefit of having a professional manage the property.
Either way, you owe it to yourself to get a willing second pair of eyes on your property. It will give you a helpful and beneficial perspective regarding where you stand in the market.
If you live in Northern California and think you could benefit from a rental market analysis, please contact us at Hignell Property Management.