Did you know that Salt Lake City is the most competitive rental market in the western United States? It is not easy to find an apartment or single-family home for rent.
While this is tough on renters, these conditions are a landlord's delight. This is especially true for landlords who own their property free and clear. The increase in competition leads to higher rates.
In addition to a competitive rental market, the city is also on the rise. Its population has increased by 2.5% over the past two years. Read on to learn how a rental analysis can help you capitalize on these conditions.
What Is a Rental Analysis?
The purpose of the rental market analysis is to recommend a monthly price. It will look at various factors affecting the local Salt Lake City market.
For example, the analysis will cover the number of available housing units. Higher inventory naturally leads to lower rents. This is because renters have more choices and can be more selective.
On the flip side, low inventory drives prices up. This is what is happening in Salt Lake City.
The renter-occupied housing rate is 53%, which is much higher than the national average. The population is growing, and more residents are competing for a smaller number of rental units.
Historical property values are another important factor. Higher property values will result in higher monthly rents and vice versa.
There are also technical factors to consider. Items like the number of bedrooms and bathrooms drive rent prices.
Square footage and amenities also affect the rental amount. Location, crime, and school quality can impact monthly rent as well.
The analyst uses this information for rental comparisons. It is important to make an apples-to-apples comparison when recommending a monthly rental price.
What Are the Benefits of Rental Market Analysis?
There are several benefits of having a rental market analysis completed. For starters, it can help you maximize your return on investment (ROI). Collecting a higher rent is going to generate more revenue.
Before you purchase a property, it can help you gauge the investment's potential. Perhaps a property cannot collect as much rent as you had hoped for. Rental market analysis can persuade a buyer not to move forward. At the same time, it can encourage investment when the conditions are right.
A good analysis will also make recommendations for improving ROI. The report may identify home improvements or renovations that will drive up the cost of rent. It will also identify local conditions that are good to be aware of like crime.
Your Guide to Rental Analysis
You are now ready to have a rental market analysis performed in the Salt Lake City area. This analysis is crucial to making a sound investment and maximizing your rental revenue.
Wolfnest has been conducting rental market analysis for more than a decade. They have been guiding property investors and helping them make a solid ROI. If you are interested in doing a rental analysis, contact us at Wolfnest today to speak with an expert.
