An important aspect of real estate is learning how the market shifts. These changes happen often, and there are many variables to keep track of. For instance, at the time of this article, there are about 30 available rentals listed on Zillow in the 90808 zip code. This number can change, especially at the end of a month.
Below is a summary of rental property performance in the 90808 zip code and the significance of analyzing rental property performance.
Several factors can influence rental prices on a rental property. One of these factors is location, as your rent can fluctuate significantly based on how close your rental property is to important locations such as a school, police station, park, shopping center, hospital, etc. Rental properties in places with fewer conveniences may significantly reduce rental asking prices.
Providing perks to your rental property, such as appliances like washers, dryers, and dishwashers, as well as private parking, utilities, and smart home features, can also help increase the asking price of a rental. The size of your property will be the most significant contributing factor to rental prices, as large properties will naturally garner higher asking prices.
As of the writing of this article, for the zip code of 90808, the average rent for an 800-square-foot unit is approximately $2500, though this doesn't consider the number of bedrooms and bathrooms. It's essential to understand how much the average rent is in your rental property's area, as this affects how much a tenant is willing to pay for your rental property. Looking at your property and comparing it to similar properties in size, aesthetic, layout, and age helps you determine how much you can ask for.
While you may want to charge the most amount for rent, it's important to remember that filling a vacancy earns more than trying to maximize monthly income through rent alone. A single month of vacancy can cost, at the very least, an average of $2500 of lost income in addition to any maintenance that may be required, which can take months or years to recover from financially. Comparatively, filling the vacancy at a slightly lower price is still positive. Regular
rental analysis can help minimize vacancy rates and improve your bottom line.
Vacancy rates are significant in determining how the market is performing. Currently, in the 90808 zip code, rental vacancy rates are approximately 2% from 9500 units. Keep this in mind: the more vacancies there are in your area, the lower you can charge for a rental. High vacancy rates can increase competition, as high vacancy rates often mean a surplus of rental properties on the market. As an investor, you must compete far more aggressively to attract high-quality tenants.
Generally, this means you may need to lower rents, offer move-in
incentives, or both to fill your vacancies. While it may seem ideal to charge as much as possible, keep in mind that it is a delicate balancing act that can greatly affect your income if tenants move out.
Market trends only reflect the market; they just show what has happened and what is likely to occur based on previous data. Understanding market trends helps investors make an informed decision about how much to charge for rent and what types of properties to invest in for the future. It can show the trajectory of asking rental prices, allowing you to make informed decisions. For example whether or not you want to invest in single-family homes, condominiums, apartment complexes, or duplexes.
Suppose you have additional questions on rental properties performing in the 90808 zip code or are looking for assistance managing your Beach City rental property. In that case, we invite you to call us today at (562) 888-0247 or complete our
Owner Application online.
