According to Niche, Jacksonville, Florida's median monthly rent is $1,375. Although this is slightly higher than the national median of $1,348, it hasn't stopped people from renting in this beautiful coastal town. Nearly half (43%) of residents rent their homes here!
So, if you're a new or prospective Jacksonville landlord, you have the potential to earn hefty property investment returns. However, it will still depend on your strategies to maximize rental income, which should start with an accurate rental analysis.
To that end, PMI River City created this guide on conducting property analyses to help new landlords get off on the right foot. Keep reading to discover tactics for increasing the accuracy of your evaluations.
Research Your Property's Rental Price Potential
Gain local real estate market insights by thoroughly researching similar properties in your area. Investigate how much they charge, as you can use this information to determine competitive rental prices. Analyzing recent market trends helps you set a realistic rent that attracts tenants while maximizing your rental income.
Calculate Rental Return and Yield
Understanding rental return and yield can help determine your property's potential profitability. As Investopedia points out, a high yield often indicates an investment's potential to offer a higher income relative to its price.
Rental return is the total generated income from renting a property to tenants over a specific period. So, if your property's renal price potential is $1,500 monthly, your annual return is $18,000 ($1,500 X 12 months).
On the other hand, rental yield is the percentage of the rental income compared to the property's purchase price. For example, say you purchased your Jacksonville property for $250,000, and your annual rental return is $18,000.
Divide the annual rent by the property value ($18,000 / $250,000) to calculate the rental yield. So, in this case, your rental yield is 7.2%.
Factor in Expenses
Value aside, you must also factor in all expenses related to your property's management, such as:
- Property taxes
- Insurance
- Maintenance costs
- Property management fees
Remember that accurate expense accounting affects your rental return. So, monitor costs regularly, as it can help you determine whether your investment properties are profitable.
Partner With PMI River City
Our full-service property management firm, PMI River City, can help you see how much you could profit from your property through our free rental analysis. Here's how it works:
- Simply give us your property's complete address
- We'll use our state-of-the-art technology to create a personalized report
- We'll include market data and a suggested rent range
Ready for Your Non-Obligatory Rental Analysis?
Achieving an accurate rental analysis involves researching your property's potential rental price, calculating its return and yield, and factoring in expenses. While vital, these steps can be time-consuming and complex, especially for first-time landlords.
If you need all the help you can get, don't worry, as PMI River City will happily extend the guidance you require so you can make more informed decisions. Our team comprises real estate, brokerage, property management, financing, and bookkeeping experts who bring years of industry expertise to the firm.
Get started today by contacting us and requesting your free, no-obligation rental analysis. We look forward to discussing how we can help you maximize the value of your Jacksonville, FL, property.
