Going into business, every entrepreneur conducts market analysis. The property management world is no different. A local market analysis should always be the starting point for understanding your competition, prices and trends. There are a few things you’ll want to look at and a few ways of looking at these things.
More Will Be Revealed
The information you discover will help you establish rent tiers, plan property upgrades and create marketing strategies. One place to start gathering this information is by doing a Zillow search in your area.
Examine how much people are paying and the quality of the properties in the area. You’ll also see how your competitors are marketing the area. Knowing this information is a boon to your business. It gives you the insights you need to be a solid competitor. A good Online Property Management Software comes with property analysis tools that provides at-a-glance key metrics, which further helps manage your properties better and have a competitive edge.
Competition Isn’t Your Enemy
While conducting a market analysis, you need to keep an eye on your competitors. You’ll need to understand who and what you’re up against. Plus, it will give you a baseline for your performance.
Studying your competitors will give you insights into the trends and dynamics of the market. It will reveal the highest and lowest rental prices in your area– both valuable pieces of information. You can input this information into your Online Property Management Software to help you keep track of market trends. Arm yourself with these insights. You’ll see how profitable your business could be.
The Trend Is Your Friend
You also need to know the trends in your area. Look at construction, average rents, etc. Is there new construction going on? Or are there recent construction modifications of existing properties?
The amount of construction going on reveals the area’s desirability. This might affect your decision to invest in the area. It also affects what you’ll charge in rent.
Compete from Every Angle
You need to look at every angle of your properties and competition. Know the properties’ location, public transportation access and amenities.
Taking a look at this information gives you a handle on how to market the area to tenants when the time comes. You can’t go wrong knowing the ins and outs of your property.
Make Your Property More Desirable
Having all this information in place, you’ll know what you can do to make your property even more desirable. You’ll discover upgrades you want to make. You’ll see what you should charge in rent. And you’ll know precisely how to market the property when the time comes. Online Property Management Software can help you reach more people, more efficiently and effectively. With Online Property Management Software, you can provide prospective clients with all the information that they need about your rental properties.
The Information You Need
Here’s a quick checklist of everything you need to do a thorough market analysis for property management:
- The area’s average vacancy rate
- The average number of days on the market, per unit
- Area tenant profiles
- Average lengths of tenancy
- Locally established vs. new construction.
- Average rents in the area.
- A fair comparison of rents in the area.
Of course, there are programs to help you with the background information you need for a market analysis. And once you start renting, you’ll also want a fully automated software program, like Vatara Online Property Management Software, to assist with your daily property management needs.