Blog Post

How to Evaluate the Success of Your Long Beach Rental

Dustin Edwards • April 18, 2022

Evaluate Your Rental's Success Correctly

As new owners of a rental property in Long Beach CA, the main goal is maximize the value of your asset. With many ways to determine the value of a real estate asset, how can you determine if you are getting the most from your rental? Today we want to share a few key strategies you could use to evaluate the success of your Long Beach rental property.


Rental Amount vs Current Market

Determining a fair market rental value is key for the success of your Long Beach rental. When landlords fail to adjust to the current market, it can increase vacancy rates and lower the yield on the asset.


Some landlords may want to over charge their tenants, this can lead to empty units that would otherwise provide cash flow if priced fairly. On the other hand, undercharging for units can be a financial burden as you would be leaving money on the table month after month.


Much like the price of real estate, rents can change based on current market pricing, supply and demand of rentals. When deciding on a fair rental amount, you should use as many data sources as possible to establish a baseline for your rental. Learn how much comparable  units in your area are renting and consider factors such as: 

  • Square Footage
  • Number of Bedrooms/Bathrooms
  • Condition
  • Curb Appeal
  • Parking


Other elements that can help determine rental rates are:

  • What type of unit are you renting? Single Family, Apartments or Townhomes. Each type of property will have a different rental amount and demand.
  • What amenities are included in the unit? Air conditioning, washer/dryer or other appliances. 
  • Where is it located? Location is crucial as some neighborhoods are more desirable and fetch a higher rent price.


Yield vs. Value of the Asset

Rental yield measures profits generated annually from the investment as a percentage of its value. You can use your rental yield to evaluate the profit from your investment. High yield properties bring in steady income. Ideally you should be looking for a rental yield above 5% for stable rental income. Understanding and observing property values and their rental yields can be a helpful tool when investing money in your own Long Beach rental property.


Return on Investment (ROI)

Measuring your return on investment to determine your property’s profitability is important. ROI measures the profit that is made on an investment in the form of a percentage of the cost of said investment. It demonstrates the effectiveness and efficiency your investments in your property are being used in order to produce profits.


Although there is no defined formula for calculating ROI on a rental, due to there being too many variables. A simple way to calculate ROI is, subtract the initial value from the current value and divide the number by the beginning value.


ROI = (current value- initial value) ÷ initial value


Normally, a 10% to 15% return is considered good, though due to all the variables included with a rental property such as repairs, vacancies, and other unexpected costs the results can change greatly.


Tenant Occupancy Rate

The occupancy rate of rental properties can have an extreme effect on its profitability. Occupancy rate is the number of months in a year your property will be occupied by tenants. Generally keeping tenants long term makes the relationship between profits and occupancy a mostly positive correlation. 


There’s a number of circumstances that affect occupancy rate. Some can be controlled by either the landlord or
property management company like developing accurate rent estimates for your area, marketing your vacant property aggressively, and screening tenants to receive credit reports and rental history in order to find ideal tenants. While other circumstances are dictated by the market.


If you feel you need help evaluating the success of your Long Beach rental property feel free to call us at (562) 888-0247 or feel free to fill out our
free rental analysis to see what your rental could yield today.

Share this post

By Dustin Edwards January 17, 2025
A new year is a new chance to start new ideas to bring in prospects to your property. Consider the following 5 ideas to engage prospects and get new tenants.
By Dustin Edwards January 10, 2025
Having clear communication with your tenant is essential for maintaining a healthy landlord-tenant relationship. By being transparent in all relevant interactions, landlords can prevent misunderstandings while resolving repairs and disputes efficiently while improving tenant satisfaction. Having good communication with your tenant is beneficial for landlords too. Effective communication also protects your investment property. Remember that while your tenant is living in the property, landlords need to take care of the repairs. Below are the three best things to do during tenant communications. Prompt Responses Addressing tenant concerns quickly is essential for building trust and maintaining a positive relationship. Tenants feel valued when landlords respond quickly, knowing that their needs are being prioritized. Building this trust not only enhances your tenant’s satisfaction it lowers the possibility of conflicts or misunderstandings to arise. This ultimately creates a healthy and successful rental experience for you and your tenant. Some of the most common inquiries will oftentimes include repair requests, among others. As an example; if your tenant reports a leak under their faucet and the repair is delayed, this can be damaging to your landlord-tenant relationship, as well as your property. If left ignored, that leak can result in hundreds of dollars in water damage and a vacancy . Which can further affect our bottom line negatively. For landlords with multiple properties, this can become difficult to keep track of. A property manager can help with scheduling repairs and communicating with your tenant on your behalf. Document Everything Keeping a detailed record of all interactions with your tenant is an important element when managing a property. There are many choices for documentation including email, text, or written notices. Although many property management companies and landlords have opted to use apps or dedicated tenant portals to log communications. A great example, for instance, a tenant may claim they’d reported a repair issue that was never addressed, if everything is to be documented, both you and the tenant would have a copy of the request. Maintaining transparency with tenants. Having thorough documentation ensures agreements and requests between all parties are clearly tracked. Documenting communications with your tenant provides landlords with a foundation for addressing misunderstandings, or disputes if and when they arise. Provide Regular Updates Regular updates show tenants that their landlord is organized and has an attentive approach to managing their property. Giving tenants ample time for maintenance, inspections or policy changes is a simple way to build trust with your tenants while showing your professionalism. Giving tenants advanced notices reassures them that you’re aware of how changes can affect them and you understand that time might be needed in order to adjust. Surprises are best kept for birthday parties. Proactively notifying tenants of changes helps clear the communication channels and minimizes disruptions which helps tenants feel valued and satisfied. These small yet consistent efforts can contribute to a positive tenant stay, which can encourage lease renewals and long-term tenancy. Additionally, having a good relationship with your tenants can give you a great reputation which can provide you with leads when looking to fill a vacancy . It cannot be understated the importance of communication for a healthy landlord-tenant relationship. Even if your tenant may not agree with some of the decisions a landlord needs to make, by giving your tenants ample time to process the change tenants generally are more accepting of said change. If you’re having trouble communicating with your tenants or if you need help managing Beach City rental property, we invite you to call us today at (562) 888-0247 or complete our Owner Application online .
By Dustin Edwards January 2, 2025
Keeping tenants safe, translates to happy and long-term tenants. Read to discover 5 Inexpensive ways to keep your tenants safe.
Show More
Share by: