Tacoma has undergone some significant rental market changes in the past year. After prices skyrocketed in 2021 and 2022, they're starting to come down. Meanwhile, the city is making way for new rental properties to increase housing in the area.
Where does all of this leave Tacoma real estate investors? Chances are, you and others aren't quite sure how much you can charge for rent these days.
A proper rental analysis can shed light on accurate rental income potential. What strategies can you use to find out how profitable your Tacoma investment property is in 2024? Read on for our top tips.
Start With a Property Assessment
When was the last time you inspected your property? Many set-in-stone conditions, like square footage or location, will impact your rental analysis. However, your rental price should equally reflect the condition of your property, which can change over time.
Make sure that you're evaluating:
- Recent maintenance and upgrades
- Outstanding maintenance issues
- Plumbing and electrical conditions
- Age and wear and tear of appliances
- Age and wear and tear of structural elements (e.g., the roof, flooring, windows, etc.)
A rigorous and swift maintenance strategy can prevent damage from hurting your rental income.
Prepare Your Local Comps
Once you have a clear sense of your property's facts, features, and conditions, it's time to prepare your local comps. In other words, you'll want to look at a minimum of three comparable rental properties to see how much they're going for on the rental market.
It's important to remember that rental values will vary a lot based on location. Even if a property in Hill Top is similar to your Old Town property, you're likely to see a difference in rent prices. Make sure to factor location heavily into your comps.
Plan Out Your Value-Add Upgrades
What if you're unhappy with what you discover in your rental analysis? Making upgrades that renters will appreciate can raise your rental income potential, and some of these upgrades are easier than you might think. Yes, you should address glaring issues like leaks and electrical problems, but there's no need to turn your rental into a luxury unit to maximize your profits.
A recent survey found that while 86% of landlords believe they know what renters want in a rental property, they tend to miss the mark. In fact, this same survey found that most renters want a more flexible way to pay rent. Something as simple as a tenant portal can attract tenants who are willing to pay a little more each month.
Call PMI South Sound for Better Rental Analysis
Rental real estate management gets tricky in times of price fluctuations. Raising your rent along with the rest of the city may have seemed like common sense in 2022, but now that things are evening out, it's hard to know where you should land.
PMI South Sound is one of the few Tacoma companies to provide both full-service property management and real estate brokerage services. We know real estate inside and out, from the buyer's perspective to the renter's perspective. Get your free Tacoma rental analysis today and learn more about our property management services.
