The single most important factor to consider when renting your property is the rental rate. Maintaining occupancy is a balancing act: Price too high and your property could sit empty, but price too low and you give away revenue. In either case you are at risk of losing all or part of your return on investment. Doing an Atlanta rental market analysis is the first step in setting the optimal price on your property. Conducting this analysis requires knowledge of the local market and an awareness of the trends that are developing.
Our Comparative Atlanta Rental Market Analysis
With this service, we look at all the factors that might influence the rental value of your property, and come up with a price that’s guaranteed to attract renters. Our CMA report process begins immediately when requested by a property owner and is prepared by one of our professional property managers. The report is an estimate of rental value for your property. Property evaluations are done by comparing other like properties in the area based on current and recent listings. Each market evaluation takes into account any additional amenities, special features, and overall condition.
How Pricing Works
Pull Comparable Listings and Sales
- Look at every similar property listed in the area over the past six months.
- Pay attention to neighborhood dividing lines and physical barriers such as major streets, freeways or railroads, and do not compare inventory from the “other side of the tracks.”
- Where I live, for example, identical properties across the street from each other can vary by hundreds of dollars. Perceptions and desirability have value.
- Compare similar square footage, within 10% up or down from the subject property, if possible.
- Similar ages. One neighborhood might consist of properties built in the 1950s next door to another ring of construction from the 1980s. Values between the two will differ. Compare apples to apples.
- Pull history for expired and withdrawn listings to determine whether any were taken off the market and relisted.
- Compare original list price to final rental price to determine price reductions.
- Adjust pricing for differing amenities, etc.
Un-Rented & Expired Listings
- Look for patterns as to why these properties remain unfilled and the common factors they share.
- Which brokerage had the listing: a company that ordinarily rents everything it lists or was it a discount property management company that might not have spent money on marketing?
- These matter only as they compare to your listing, but bear in mind that renters can ask whatever they want.
- To see what renters will see, visit these properties Make note of what you like and dislike, the general feeling you get upon entering these properties.
- These properties are your competition. Ask yourself why a renter would prefer your property over any of these and adjust your price accordingly.
Market Dependent Pricing
- After you have collected all your data, the next step is to analyze the data based on market conditions.
- In a buyer’s market, your rental price might allow some wiggle room for negotiation to entice a renter to tour your property. To rent in this market, you might need to price your property more aggressively.
- In a seller’s market, you might want to price your property a little higher than comparable properties. When there is little inventory and many renters, you can ask more and likely get it.
- In a balanced or neutral market, you may want to initially set your price higher than average but be responsive to market fluctuations.
Rental Form Analysis
How much can you charge for your property? Find out with our FREE Atlanta Rental Market Analysis!