At any given time, there are a few hundred properties for sale in Goldsboro, NC.
If you're a property investor, deciding which properties to invest in can be quite the conundrum. Getting it wrong could result in failing to maximize your ROI or, in the worst scenario, having to offload your investment when it fails.
One of the best ways to avoid these circumstances is to perform a rental analysis. In today's post, we'll help you understand what a Goldsboro rental analysis is and why it's so important for your investment portfolio. Keep reading and learn how to properly invest in real estate in Goldsboro.
What Is a Rental Analysis?
On a base level, the purpose of a rental analysis is to determine how profitable a rental property might be. Real estate investors use them to decide whether or not to add a particular property to their investment portfolio.
More specifically, it's an analysis of how much a landlord can reasonably charge per month for a rental property. It looks into various factors to determine a rental price, from the state of the home to the rental price of other similar properties in the local area.
Why a Rental Analysis is Important
A rental analysis is important for a few reasons. As mentioned, it can help you figure out if a property is going to give you the ROI you're looking for before you buy. It also helps you maximize your ROI after you buy.
Setting a fair and appropriate rental price is a delicate balance. Price your unit too high and you'll scare off potential high-quality tenant candidates from even applying for your unit.
Price it too low and a couple of things could happen. First, you'll fail to maximize your rental income, which no landlord ever wants to do. Secondly, it widens your pool of potential candidates too much, making the tenant screening process more difficult.
When you fail to get the right tenants into your rental units, you put the property at risk of having a high vacancy rate. Bad tenants also make your life as a landlord more stressful. In the worst circumstances, you may have to go through a long and tiring eviction process.
How to Perform a Rental Analysis in Goldsboro
The first step in performing a rental analysis in Goldsboro is to look at the real estate market in comparison with the rental market. Next, look at your neighborhood to determine what other similar homes are charging per month for rent.
Look specifically at homes that are of a similar size and condition to yours with the same number of bedrooms and bathrooms. Using these factors, you can determine a viable range for your rental price and figure out what your ROI might look like.
Hire Property Management to Help
Now that you know why you must perform a rental analysis, it's time to discuss the role of property managers. A good property manager who has experience in the Greensboro real estate and rental markets can perform thorough and accurate analyses of your property.
At FRG, we're a top Greensboro property manager, offering comprehensive property management services. Contact us today to get a free management quote and rental analysis on your property.
