Covina is a historic town filled with a variety of shops, entertainment, and restaurants. It's about 22 miles from Los Angeles and a popular choice for workers who prefer to live outside the bustle of this thriving city.
Only 57.6% of people own their own homes in Covina, which makes this an excellent city for investors looking to earn passive income.
Are you a new landlord or looking at revising your rental prices for the year and not sure where to start? The best way to ensure you don't miss out on this promising market is by conducting a rental analysis.
The good news is that you can do this in just four steps. Keep reading to find out how.
1. Research the Surroundings
Find out as much as you can about Covina and the neighborhood surrounding your rental property. A property manager or a real estate agent can help you carry out a detailed investment property analysis.
Online sources can also provide insights into the competition for tenants based on the number of rental units in the area. Try to identify which factors attract renters to the neighborhood.
Some things to investigate include:
- Access to public transport
- Good walkability scores
- Highly-rated schools
- Amenities and attractions
- Access to shops, restaurants, and medical services
- Safety and security
- New businesses and development
These factors add up to more demand and the potential to charge higher rentals.
2. Use Comps for Your Rental Analysis
Existing rental prices are a good indication of real estate market trends in a neighborhood.
Look for rental properties located within three miles that match yours based on:
- Square footage
- Number of bedrooms and bathrooms
- Lot size
- Age and condition
Make a note of what landlords are charging for these properties and their occupancy rates. High vacancies indicate that they're priced too high.
3. Calculate a Fair Rental Rate
Keep track of all your findings on a spreadsheet and calculate the average rental rate for these comparable properties. This will give you a baseline to work from when completing your calculations.
California has a rental increase cap of 10%. So you can't increase your existing rates by more than this in one year.
That's why it's important to carry out a careful rental market analysis at the outset. If you price your property too low at first, you'll never catch up.
4. Consider Costs to Ensure Profits
As a real estate investor, you need to enjoy a profitable ROI on your rental property, so you must consider relevant expenses when setting your rent.
Some things to take into account include property taxes, maintenance costs, utilities, rental property management fees, and your mortgage. Remember to take potential vacancies into account, too.
Maximize Your Covina Long-Term Rentals
To make the most of your investment properties in Covina, it's best to work with an experienced property manager. These professionals can offer invaluable assistance with every kind of rental property.
PMI San Bernardino can assist you with a free rental analysis and help you maximize your Covina investment properties. Our team of expert property managers will help you market your property, find good tenants, and limit vacancies.
Get in touch to ensure your success in the competitive Covina rental market.