What to Expect in a Property Rental Analysis
Dustin Edwards • April 23, 2021
An Analysis of Your Long Beach Rental Can Help You to Maximize Your Investment
The age of information. Information at your fingertips. It seems easier and easier to get the answer. When you find an answer have you wondered about the quality? Have you asked if it's the right answer for you? Your situation? Is it the best answer for your property?
You can input your property address in a website to see what if your Long Beach rental income
is inline with market rents, but is it right?
Properties Compared by Size and Configuration
The most common comparable that is used by both human analysis and algorithms is that of size (i.e. square ft) and configuration (i.e. number of bedrooms and bathrooms). This is the initial baseline with which by nearly all properties are compared whether for sale or for rent. Quite often we will even normalize the square footage to determine a rental value per sq ft to help us account for properties that are similar in configuration but may be different in square footage (for example both are 3 bedrooms/2 bathrooms but one is 30 sq ft larger).
Starting with these basic metrics is where many people will stop; however, we challenge you to explore in greater detail on how your property could be evaluated to help you maximize your rental investment.
Adjustments Based on Unique Differences
There are items that can add value to a property that might not be calculated into the algorithmic approach. Property aspects such as recent upgrades (i.e. kitchen/bathroom) or location on a given street (corner vs. interior street) can have a dramatic impact on the monthly yield of your rent. As you consider interviewing, property management companies
offer up the unique aspects of your property to help the prospective property manager give you a full picture on what your property could yield in rent.
Adjustments Finely Tuned for Your Neighborhood
This is one that is particularly challenging for today’s algorithms to handle. I requested that my marketing team research compare rental analysis reports from other companies to ensure we remained competitive.
In one example (I won’t share the company) they compared a property in the 90808 vs. the 90815. While these two zip codes are certainly close in proximity we know, as those local to Long Beach, that they are very distinct neighborhoods within each of those zip codes. Long Beach is incredibly unique, where the difference of one street east or west could mean more than $100 per month in rent and comparing by distance (which most algorithms do) isn’t going to help you get the most for rent out of your Long Beach investment property.
Recommendations Based on Days on Market
When a property is priced right, whether that be for rent or for sale, it won’t last long on the market.
As you evaluate different property analysis reports take a look at the days on market with the comparable rents. Even if you own your property outright each day is costing you money (i.e. insurance, property taxes, etc.) which means the longer you stay on the market the more you are losing.
You don’t want to leave money on the table by overpricing your property! Overpricing can be a mistake that can stick with you for months.
Take time to ask your prospective property management company how you can position for a maximum yield on rental income while minimizing the days on market.
If you’d like guidance on if a rental property is fairly priced we invite you to call us today at (562) 888-0247 as we’d be happy to help. When you want a quick check to see how much your property could fetch in rent we invite you to fill out our Free Rental Analysis
where we perform a comprehensive comparison to share your rental stacks up to the competition.
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Have you considered including utilities in your rent? Here are some of the most common utilities that help tenants see a greater value on renting your property
Your property’s roof is its first line of defense from the sun, rain, and wind. Which means it will eventually wear out. Many landlords overlook this since a roof is generally designed to last twenty or so years, and they simply forget until the signs begin to show. Below, we’ve compiled a short list of five signs it’s time to replace your roof for when doing property inspections. Tenant Complaints When your roof has become damaged, your tenants will likely be the first to notice. When tenants report water stains on the walls and ceilings, it's a sign that you should inspect your roof. In severe cases, your tenant may notice water dripping from roof leaks. This moisture, if left unchecked, can lead to the growth of mold and mildew, which can be a health concern for your tenants. Some tenants simply move out, assuming the odors or recurring respiratory issues are caused by the rental and not just the roof. This leaves you with a vacancy to manage, and if you’re unable to find the leak during this period, the following tenant may have a negative experience as well. Many landlords have found it beneficial to have property inspections regularly in order to preserve both the property’s value and the tenant’s trust. Roof’s Age Even with the highest quality materials, a roof still has a shelf life. Most roofs in Long Beach, CA, use asphalt shingles, and these generally last around twenty to twenty-five years. Once they've passed this threshold, the faults begin to show themselves. A sagging roof line is a sign that your roof is due to be replaced, as it's a serious concern. It often indicates that moisture has entered the underlying decking and caused some structural damage. From ground level, you may not be able to notice these problems. However, during an inspection of the property, an experienced inspector should be able to notice soft spots or contours on the roof. These forms of damage often get worse over time. Coordinating these inspections and preventative maintenance can be difficult for landlords with an extensive portfolio, which is why many enlist help. Shingle Damage Damaged shingles are one of the most obvious signs that your roof is deteriorating. If you ever notice cracking, curling, or patches with missing shingles, the roof is no longer providing adequate protection to your property. Although you can buy time with spot repairs, if the entire roof shows signs of damage, it’s likely time to replace the roof. Aside from protecting your property, the roof affects your property’s curb appeal. A patchy and worn-out roof can drive down the rental appeal. Prospective tenants will easily be able to spot the differences between pictures taken in the listing when compared to the property in person. This can not only hurt your chances of filling a vacancy, but it can also hurt your reputation as a landlord. Granules in Gutters After heavy rainfall, it's a good idea to inspect your rain gutters. If you or your property manager notice large amounts of black or gray granules, it means your roof shingles are breaking down. These granules are critical for shedding water off the roof. Once the granules fall off the shingle, the shingle begins to degrade faster under the sun and elements. If you’re not sure how old your roof may be, Loss of granules can be a strong indicator that your roof is nearing the end of its lifespan. Regular gutter cleaning and roof inspections can help catch these problems early before they become expensive repairs . Increase in Utility Bills Your tenants complaining about their utility bills increasing or poor temperature control in the rental may not realize the roof is to blame. A failing roof can result in subpar insulation and ventilation. This can lead to higher heating and cooling bills for your tenant. This can be frustrating for your tenants while putting more strain on the HVAC system. This puts more wear and tear on your HVAC system. Being aware of the warning signs and being proactive can protect your rental property, maintain tenant satisfaction , and avoid emergency repairs. If you need help inspecting your roof or you need help managing your Beach City rental property, we invite you to call us today at (562) 888-0247 or complete our Owner Application online .
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