If you've recently become or are just about to become a first-time landlord in Greenville, SC, you're in luck. As the anchor city of Upstate South Carolina, it's an excellent place to own a rental property. Per ZipRecruiter, landlords here make an average annual salary of $88,151, with the highest earners even making as much as $141,983 yearly!
However, to maximize rental property ROI (return on investment), you must master the art and science of rental analysis. It's your ticket to appropriate rental pricing, which influences your overall profits.
Flagship Property Management's real estate investment experts have shared rental analysis real estate tips in this guide, so read on.
Use the Sales Approach Analysis Method
The sales approach, also called the "market approach," is one of the most commonly used real estate investment strategies. Real estate appraisers, agents, and investors often use it to determine a property's sales income potential. However, you can also use it to establish the rental income potential of a property you own (or are about to invest in) and determine how much rent to charge and collect.
To use the market approach, you'll have to:
- Research comparable properties or comps
- Analyze the comps' historical and current rental rates
- Use the comps' rates to establish how much to rent your property for
Understand What Comps Are
Comps are properties with characteristics and features similar to the one you're about to invest in or already own. The location of the comps is the most critical factor here; they must be very close to your property. They must also be the same size (in square footage) and have the same number of bedrooms and bathrooms (or units for apartment complexes).
Dig Deeper and Factor in Variables
When using comps to determine your property's rental rates, compare their age, condition, and amenities with yours. Do they have air conditioning, an in-unit washer/dryer, high-speed internet, soundproof walls, or walk-in closets? Per RentalHousingJournal.com, these five are the most sought-after features renters want or may not even rent without.
If your property has amenities that the comps don't, you can use the comps' rental rates as a baseline. Then, factor in and add the appropriate rental value of your property's extras. A slight increase is usually justifiable, especially if your property's amenities are those renters seek the most.
Partner With Flagship Properties
The easiest, most straightforward way to perform a rental analysis is to have a professional real estate and property management company conduct it on your behalf. If you choose Flagship Property Management in Greenville, SC, we'll do it for free.
Simply give us the address of your rental property, and we'll do the work for you so you can determine the profits you can make from your investment.
Get Your Free Rental Analysis Today
While you can perform rental analysis using the sales approach method, it can be time-consuming.
So, why not let the experts at Flagship Properties and Flagship Property Management, which has served Upstate South Carolina since 2008, do it for you for free? We'll use our state-of-the-art technology, skills, and extensive industry experience to help you determine how much you can profit from your Greenville, SC, property.
Contact us today so we can start analyzing your rental property for free!
