52% of the Salt Lake City area's housing is renter-occupied.
If you're looking to invest in a rental property in Murray, there's a lot you need to consider. You'd be remiss to purchase something without first performing a thorough rental analysis to determine whether the property will give you the return you need.
In today's post, we'll tell you how to perform effortless rental analysis. When you take the time to understand the local real estate market, you can get an accurate rental income calculation that leaves little to the imagination. Keep reading and find the Murray property that gives you the highest bang for your buck.
Look at the Rental Market
The first step in any quality rental analysis is to look closely at the rental market to determine what rental prices are like around Murray. When you have a general idea of what others are charging for rent in different types of properties, you can project what a given property might return.
On average, a 1-bedroom apartment in Murray goes for about $1,400. That said, various factors contribute to a rental price, which we'll discuss more in-depth next.
Neighborhood and Amenities
When you're comparing different properties and their rental prices, you have to take everything into account. Of course, the size of the property and the number of bedrooms play a huge role in how much you'll be able to charge for rent, but that's just the start.
The neighborhood you're looking to buy in plays a major role as well. Certain areas of Salt Lake City are more desirable areas to rent in than others, so two similar properties will fetch very different rent prices in two different areas.
It also comes down to the amenities, both in the property itself and the local area. If there are good schools, nightlife, or parks around a particular property, it'll be more sought after and you'll be able to charge more.
Consider Your Expenses
The other thing to consider is your expenses. How much you have to pay for a property, as well as the amount of work you'll need to do to maintain it should play into how much rent you charge.
Some experts recommend that you charge around 1% of the value of the home for monthly rent. The average home price in Murray is over $500,000, however - $5,000 per month isn't exactly an affordable rent price.
One way to cover your costs is to consider the possibility of converting a single-family home into multiple rental units. Doing so creates more work, but it'll allow you to generate more rental income.
Rental Analysis and Property Management
These property investment tips will guarantee a thorough and accurate rental analysis. You need to get all of the information available before investing in a rental property. If you need a bit of help with it, hiring a property manager is a great idea.
At PMI Wasatch Front, we have the local knowledge and real estate expertise to give you the best property management insights. Contact us today to discuss your investment strategy and how we can help.
