Are you considering investing in real estate in Columbus, GA? If so, you're on the right track. Per Gallup's 2024 "Best Investment Ratings," real estate is still the best long-term investment for Americans.
However, to maximize your real estate investment, you must do your due diligence and careful research, starting with a comprehensive rental analysis.
If you're unsure where to begin, don't worry; the real estate experts at Bickerstaff Parham Property Management have your back. Read on as we've outlined the three steps you must take for real estate investment property analysis.
1. Establish Your Target Rental Market
First, determine who you want to rent to in the long run. Remember, your real estate ROI (return on investment) will also depend on finding quality tenants you want to keep long-term. So, if your property's characteristics don't meet prospective renters' needs, you'll have difficulty renting it out and earning a stable rental income.
For instance, let's say you want to rent out to households. In Columbus, GA, residential rentals are a good idea, considering that, per WorldPopulationReview.com, 50.5% of the city's houses are renter-occupied. In this case, you'd want to invest in a property that is:
- Close to offices and schools
- Near essential facilities and services, including hospitals, pharmacies, and fire/police departments
- Close to shopping and dining establishments
- In a family-friendly neighborhood
However, if your primary goal is to earn vacation rental income, you must also consider choosing a property close to local tourist spots and attractions.
2. Research Comparable Properties
In the realm of rental market evaluation and income property assessment, comparable properties, also called "comps," have characteristics similar to yours (or the one you want to buy). A property is comparable if it has the same or similar:
- Size in square footage
- Number of bedrooms and bathrooms
- Amenities, such as HVAC systems, appliances, landscaping, and outdoor spaces
- Age and overall condition
You can find comparable properties by researching rental listing websites and using filters to narrow your search.
3. Determine a Fair Rental Rate
One of the most crucial property rental strategies is to charge a rate based on an area's fair market rents. If you set your price too high, you'll likely struggle to find tenants, considering they have similar yet more affordable options. If this happens, you'll face high vacancy rates and significant losses.
So, once you've found comparable properties, review their current rates and historical prices. Then, use them as guidelines to set a reasonable price for yours.
Get Your Free Rental Analysis Today
Now that you know how to perform a rental analysis, you can make more informed decisions. However, to enjoy a more straightforward process, consider working with Bickerstaff Parham Property Management, our full-service property management company in Columbus, GA.
If you work with us, you can benefit from our free comprehensive rental assessment, in which we evaluate a property's or a specific area's rental potential. We also have a rental comparison tool that enables us to provide actual current rental rates for comparable properties. Plus, if you hire us as your full-service property manager, we'll handle the entire leasing process, from property analysis to marketing, tenant placement, lease enforcement, and eviction.
Speak with us today to get started with your free rental analysis!
