Our rental analysis graphically illustrates the comparable properties that closely match your property’s characteristics. These properties will help to find a fair market rental value for your property.
FAIR MARKET VALUE HAS BEEN DEFINED AS:
The highest price estimated in terms of money which the property will bring when the property is listed for rent in the open market by a willing lessor, allowing time to find a willing renter, neither lessor nor renter acting under compulsion, both having full knowledge of all the uses and purposes to which the property is adapted and for which it is capable of being used.
This market value definition presupposes perfect knowledge on the part of the renter and lessor. Since this perfect world rarely exists, our estimate of price is generally indicated as a range.
In evaluating your property I have used many of the tools that a professional appraiser utilizes: properties currently offered for rent, properties currently rented, size, location, amenities, and the general condition of the property.
The enclosed data was researched from the reliable information currently available online and Real Property Management Humboldt’s extensive archive of property information. It does not reflect every property of comparable value for rent now, but does represent a good cross-section of the competitive rental inventory.
Please note that while none of the properties are exactly like yours, they do provide a good reference source in a comparative rental analysis.
Factors that Affect the Rental Value of Your Property in Today’s Market
Location is the single most important factor in determining the rental value of your property. Competition
Prospective tenants compare your property against competing properties.
Tenants will perceive value based upon properties that have rented or are available for rent in the area. Timing
Rental values are affected by the current rental market and the local economy.
As the state of the rental marketing cannot be manipulated, a flexible marketing plan should be developed which analyzes the current rental conditions and individual features of the property. Condition
The condition of the property ultimately affects the amount of rent a property can command and the speed at which it can be rented.
As prospective tenants often make application based on emotion, first impressions are important.
Optimizing the physical appearance of your property will maximize the renter’s perception of value. Price
Pricing your rental property from the beginning is an important factor in determining the length of time it will take to rent your property.
Reviewing this rental analysis will assist you in determining the best possible rental price.
The Importance of Intelligent Pricing
A competitive price will attract more prospective tenants.
As the triangle graph above illustrates, more renters rent properties at the market value than above market value. The percentage increases even further when the price drops below market value. Therefore, if you price your property at market rental value, you are exposing it to a much greater percentage of prospective tenants and you are increasing your chances of a successful outcome.
We have provided a sampling of some of the properties that are currently for rent in the nearby area. Please note that some will offer more than the subject property and some will offer less. When evaluating the property, we have taken the items in the below chart into account. In our opinion, your property will rent for $2,100-$3,350 in the current market, which has improved slightly in line with seasonal moving patterns.
A range of rental value is provided so you can make a sound decision based upon your personal situation. The higher figure represents a rental which may be achieved given time, and may be used to test the market. The lower figure is one which may appeal to a tenant quickly.
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Whether it is an early asset or you own a portfolio of properties, the importance of utilizing an expert and knowledgeable property manager remains paramount.
After the excitement surrounding the purchase of an investment property has faded, and the time absorbing reality of property management becomes apparent, investors often feel overwhelmed with the dedication and commitment required.
Have you considered the magnitude of what is involved in managing an investment property? As a private landlord do you have the knowledge, time, tools, skills and specialized services available to you that will ensure your investment is managed efficiently and effectively?
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Quality Tenant Selection
Real Property Management employs a thorough tenant selection process. Applicants are required to submit a detailed application and a full credit and criminal background check is performed. Income sources are verified and a scripted interview process is performed with previous landlords to verify that applicants are honest, responsible, and pay their rent on time. An ounce of care in selection saves you from many headaches down the road.
It may be difficult to take a step back when you become emotionally involved in both the property and your tenants. How do you resolve late or unpaid rent? How do you conduct objective move in and move out inspections? Being up to speed with new and pending regulations
Is your property smoke monitor and carbon monoxide detector compliant? Are you familiar with all the conditions of California’s Warranty of Habitability? Are you prepared with all the required disclosures for rental property in California?
Full Accounting Systems
Real Property Management uses a specialized trust accounting system which makes filing your annual tax return a whole lot simpler. Along with the monthly statements you receive, we produce a simple and easy to read annual statement which details all your income and expenses. Are you also aware that the cost of employing a Property Manager may be used to offset your taxable income?