NOLO provides a great overview of Alabama landlord-tenant laws, including laws about raising the rent. While you can't raise your North Alabama rent whenever you want, there is no limit on how much you can raise it at a time.
Unfortunately, this means that some landlords have continuously raised their rent and lost sight of how much their property is really worth to renters. High rent can lead to high turnover rates and long periods of vacancy.
If this sounds familiar, it's time to conduct a new rental analysis. Read on as we discuss the real estate analysis tips that actually work here in North Alabama.
Step One: Inspect Your Property
First, you need to know your property inside and out. In addition to basic features, like the number of bedrooms and the usable square footage, you need to assess the current state of:
- Plumbing
- Electrical
- Appliances
- Structural qualities (e.g., windows and roof)
- Aesthetic qualities (e.g., paint and carpeting)
What if you have tenants currently living in your rental unit? Take a look at our rental inspection tips.
Step Two: Create New Comps
The rental market can change drastically year over year. Now that you've reevaluated your rental property's basic features and current condition, it's time to look for properties with:
- The same property type (e.g., townhome vs. single-family home)
- Similar features (e.g., number of bedrooms and bathrooms)
- Similar square footage
Before you go casting a wide net, narrow down your search to your neighborhood. This Best Neighborhood analysis of Florence rental prices reveals just how much location can impact the average cost of rent.
Step Three: Make Value-Add Improvements
You've completed your comps and you're looking at your rental income strategies and the two aren't lining up. Is maximizing rental returns possible at the rate your rental analysis revealed?
Make strategic upgrades that can raise your rental value without drastically outpricing your local competition. Start with necessary repairs (such as fixing plumbing issues) before moving to aesthetic improvements.
Step Four: Tap Into Your Ideal Market
You now have an accurate assessment of your property's value in rent. How can you find the right tenants to pay that new rate?
Great property marketing starts with knowing who your audience is and how to reach them. You'll use much different language to appeal to, for example, North Alabama students versus local retirees. If you're not sure how to get started, experienced property managers can help.
Let Strutt Simplify Your North Alabama Tenant Analysis
Alabama state laws may not be stopping you from raising the rent, but you may be hurting your own competitive edge in doing so. If you're struggling to attract or keep tenants, a rental analysis can reveal if your rental price is steering you wrong. You can use this guide to get started or let Strutt Properties take care of it for you.
Strutt Properties is proud to manage the biggest portfolio of rental properties in North Alabama. Get started with a free consultation to find out why we're the number one choice for local property investors.
