In this video, Roy True, with GoldenWest Management discusses how we do a market analysis for the multifamily properties that we manage to determine what units in those properties should rent for. Properly pricing each unit within a multi-family apartment, even a smaller duplex or fourplex, is more complicated than pricing a single family home. Create a rental market analysis for a multi-family unit is a bit different than a single family home. With a single family home we look at the location and bed/bath count first to determine the rent. Then, we look at like properties within the area that rented within the last six months. We look at the location and size to start. How many units are within the complex? What’s their bed/bath count? Is it in a desirable neighborhood? When was the property built? We also find out if it has in-demand amenities, such as a pool, a gym, laundry in each unit, laundry on site, and many more. In other words, we start by looking at the asset as a whole when determining the rental rate. Attracting good tenants means pricing correctly. If you have an apartment building in a location surrounded by a number of other buildings, you need to offer something extra to have a higher rent than your competitors. This can be those in-demand amenities, a larger square footage, a higher bed/bath count, or even what kind of units you have such as lofts or penthouses – but you need to consider where you stand with your competition when pricing out your units. Working with an experienced property manager gets you a forensic review of all this information, as well as your P&L, cap rates, and cash flow statements. All of these reports are then analyzed to have a positive impact on your bottom line revenue.
In this video, Roy True, with GoldenWest Management discusses how we do a market analysis for the multifamily properties that we manage to determine what units in those properties should rent for. Properly pricing each unit within a multi-family apartment, even a smaller duplex or fourplex, is more complicated than pricing a single family home. Create a rental market analysis for a multi-family unit is a bit different than a single family home. With a single family home we look at the location and bed/bath count first to determine the rent. Then, we look at like properties within the area that rented within the last six months. We look at the location and size to start. How many units are within the complex? What’s their bed/bath count? Is it in a desirable neighborhood? When was the property built? We also find out if it has in-demand amenities, such as a pool, a gym, laundry in each unit, laundry on site, and many more. In other words, we start by looking at the asset as a whole when determining the rental rate. Attracting good tenants means pricing correctly. If you have an apartment building in a location surrounded by a number of other buildings, you need to offer something extra to have a higher rent than your competitors. This can be those in-demand amenities, a larger square footage, a higher bed/bath count, or even what kind of units you have such as lofts or penthouses – but you need to consider where you stand with your competition when pricing out your units. Working with an experienced property manager gets you a forensic review of all this information, as well as your P&L, cap rates, and cash flow statements. All of these reports are then analyzed to have a positive impact on your bottom line revenue.
