Portsmouth, NH, which Niche.com has given an impressive score of A and ranked as the second best place to retire in New Hampshire, is undoubtedly one of the best places to own a property and be a landlord. Its median rent is higher than the national rate ($1,778 vs. $1,348), and rental demand is strong, with 48% of its residents being renters.
However, a lot goes into renting your property and maximizing its potential. One of these crucial steps is performing a comprehensive and accurate rental analysis.
In this article, the Cardinal Point Property Management team will explore three key steps in rental analysis to help you make more informed decisions.
1. Analyze Rental Market Trends
Evaluating market trends is the first step to accurate rental valuation and property investment analysis. Examine the local rental market and consider factors driving demand and prices. Understanding the following can provide invaluable insights:
- The neighborhood's growth
- The economic situation
- The community amenities
Here are some points to consider when analyzing market trends:
- Current rental prices for similar properties in your area
- Average vacancy rates and how they fluctuate depending on the season
- Demand drivers such as employment rates, school districts, and local attractions
By closely monitoring these factors, you can position your property more competitively.
2. Set Competitive Rental Rates
Next, conduct a thorough property evaluation to help you establish fair yet competitive rental rates. Avoid overcharging, as this can deter potential renters or force current tenants not to renew the lease agreement. Exorbitant rates can complicate rent collection and even lead to evictions in Portsmouth, NH.
However, that doesn't mean you should undercharge. Doing so will only reduce your profits or leave you without funds for property upkeep and repairs. As recommended by Investopedia, investors should ideally set aside 1% of their property's value for maintenance and repairs.
The key here is to compare your property to similar listings. Ask yourself the following:
- What amenities does my property offer that others do not?
- How does my property's location compare to others on the market?
- How can I improve my property's appeal, such as renovations or staging?
3. Maximize Property Returns
Lastly, focus on maximizing your property returns by ensuring your property generates the best possible income. Consider enhancing your property in ways that allow for higher rents:
- Implement energy-efficient improvements to save costs in the long run
- Offer flexible lease terms to attract a broader range of tenants
- Invest in quality property management to handle property maintenance, tenant screening, and resident relations
By focusing on these strategies, you should see a significant increase in your property returns.
Ready for Expert Rental Analysis?
Accurate rental analysis requires understanding how to analyze market trends effectively, setting competitive rates, and maximizing returns.
Fortunately, Cardinal Point Property Management's team of property management experts is ready to help. We've been providing full-service rental real estate management solutions to landlords, investors, and renters in Portsmouth, NH, since 2012, although our collective expertise spans over thirty years. So, you can count on our skills, knowledge, state-of-the-art technology, and local expertise to make your rental property thrive.
Reach out today so we can get started on your free property consultation!
