The fluctuating rental market can be hard enough to understand even without the competitive nature of Houston in the mix. Trying to work out the leasing landscape can be as dynamic and diverse as the city itself. So, how can you ensure you conduct a Houston real estate market analysis effectively?
Read on to discover some of the best advice when it comes to running a rental analysis in the area and starting to unravel its trends. As you check out each one, you will uncover more insights that should boost your ability to set rental prices.
1. Analyze Local Rental Market Trends
Conduct research to learn what the rental prices are like in the area. At the very minimum, you will want to learn the average rent price in Houston, as well as the upper and lower bands. This enables you to compare your rentals to this number and advertise your property with a more appropriate price.
Beyond the Average Rents in Houston
Make sure you have information on properties in many different areas of Houston to help you identify profitable rental hubs.
Also, try to cross-reference these numbers with whether the location:
- Is a short-term or long-term rental
- Has local amenities such as schools
- Is close to upcoming infrastructure projects
This list is non-exhaustive. There are plenty more things you will need to look for, too, to ensure you have a comprehensive understanding of your data.
2. Understand The Impact of Houston's Rental Regulations
It is important to consider how local or national laws push the average rent in Houston both up and down. You may discover that specific laws related to pets or service animals, for example, will cause shifts in the rentability of locations.
When the eviction of problematic tenants from a location becomes more challenging, it can decrease rent in some regions. So, make sure you understand the ins and outs of such a situation and what the effect on your analysis might be.
3. Bear in Mind How Seasonal Variation Affects a Rental Analysis
Ensure you do not make a rental analysis based on a single dataset. You need to have information over at least one year, to account for the rising and lowering prices around various annual trends. Holidays and local celebrations, for example, can have a huge impact on how much a rental can bring in when advertised.
Other things you will want to consider include weather, seasonal variations in climate, and general market shifts. If possible, compare your data with previous years' information to get a trend line too.
Partnering With a Rental Analysis Expert
As the rental market brings you through its ups and downs, remember that knowledge is a powerful ally. Developing a rental analysis can ensure that you can make decisions from a position of knowledge rather than guesswork. What you need is someone to do the legwork for you.
We offer expert guidance in many forms of market insight, from rental analysis to property management. Our award-winning team can help you when things seem overwhelming. It's time to call Terra Residential Services and learn how we can lighten your rental property workload.
