Over 30% of the households in Hammond, Indiana, are renter-occupied, according to Bestplaces.net.
If you're looking to make an affordable investment in a thriving real estate market, Hammond is a great option. There are plenty of amazing properties available and just as many great renters to fill them.
That said, being a landlord isn't a walk in the park anywhere. The first challenge you'll run into is figuring out how much rent you'll be able to charge for a given investment property.
In today's post, we'll help you perform a thorough rental analysis by giving you some crucial property management advice. Keep reading and you'll be able to select the perfect rental property and maximize its ROI.
Look at the Hammond Rental Market
Every rental valuation should start with a glimpse into the local real estate market trends. You can get a strong sense of what you'll be able to charge for rent by identifying similar properties to yours and looking at what they charge.
For this tactic to be effective, you'll want to find properties of a similar size with the same number of bedrooms, and similar in-suite amenities. The rental doesn't have to be in the same area as yours, but you'll need to factor location into your valuation.
What Sets Your Property Apart?
With an idea of what a rental like yours typically goes for, you can move on to determining what sets your rental apart. If you've got specific amenities that other rentals don't have, like brand-new appliances or a large backyard, you can factor that into your rental valuation.
As mentioned above, location plays a huge role in rental prices. If your property is in a desirable part of Hammond, near lots of exciting amenities - schools, parks, nightlife, restaurants, shops, etc. - you'll be able to charge more.
Considering Your Financial Commitments
The last thing to think about with your rental property is your own financial commitments. Every landlord's goal is to start making money as quickly as possible. You'll have to crunch a few numbers to ensure you're bringing in more money than is going out to your mortgage and upkeep.
There are several ways to do an investment property analysis. Many experts recommend the 1% method, which advises landlords to charge 1% of the property's purchase price per month for rent.
The average home value in Hammond is around $170,000, which means you'll charge $1,700 per month. Sadly, this is much higher than the average rent price. To make it all work, many landlords will convert a single-family home into multiple rentals.
Let a Property Manager Help with Your Rental Analysis
These rental analysis tips should help you settle on an accurate rental price for your rental. It's important not to charge too much or else you'll end up shrinking your tenant pool. Charging too little will leave too much money on the table.
If you need help with your rental analysis, PMI NWI can help. As Hammond's premier property manager, we bring local expertise that will ensure you're maximizing your rental property. To get your free rental analysis, contact us today.
