Rental property. If you are going to own this, you need to ensure that you are in a good rental market.
In Washington, the median rent in 2022 can be over $2,000 per month. You will need to conduct a market analysis to see if you can charge more or less than this median in your area.
What do you need to keep in mind? What do you need to consider?
This is your guide.
What Is a Market Analysis?
Before you can perform a market analysis, you need to understand what one is. This is essentially considering all of the main factors that can make your area either desirable or undesirable to the average renter.
What do you need to consider here? Let's take a closer look.
One thing that you are going to have to consider is how safe the area is. How much violent crime happens in your area? Is there a lot of poverty there?
These are things that you need to account for when determining how much value your area has. The reason should be obvious.
People want to feel safe where they are living. They want to lock their doors and sleep peacefully without worrying about the threat of people breaking in.
That happens in areas with better crime stats and less poverty.
The next thing people may consider is how walkable their neighborhood is. This can especially be the case for those living in apartments in busy cities.
It may be inconvenient to get their car out for every little thing, so it can be an advantage for you if someone can walk to a lot of their necessities.
This website measures how walkable every area is. It accounts for things such as sidewalk space for people to walk or jog, public transportation, the number of stores open, bicycle lanes, where schools and offices are, and more.
If your area has a high walkability score, people may view that as more convenient for their daily lives and pay you more in rent.
This mainly applies to investors that wish to target families. Most parents want the best for their children, and part of that is having access to a good school system.
In some parts of the country, this is not easy to find. It can be advantageous to be in an area that has a good public school system because people can feel like they are giving their children access to a better education.
When it comes to improving the lives of their children, parents are usually willing to pay for it. Enough should have the means to increase the value of an area that meets this.
Conduct a Market Analysis
These are just three factors that you have to consider when conducting a market analysis. You must remember that people want to feel safe in their homes, want to have walkability to stores and other locations, plus access to good schools.
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