MARKET RENT ANALYSIS
WHAT IS A MARKET RENT ANALYSIS?
A comparative market rent analysis is an estimate of a property’s rent used to help landlords or tenants determine market rents for similar property types.
The analysis considers the location, age, size, construction, style, condition, and other factors for the property and comparable rents.
STEPS INVOLVED IN A MARKET RENT ANALYSIS
1. Evaluate the property condition and subject rental area
2. Gather property details
3. Select correlated market sector buildings and rent comps
4. Compare chosen market data to the subject property
5. Determine rent value after comparison
WHY USE A RENT ANALYSIS
Landlords can determine an appropriate rent price for their properties based on market conditions and market rent comps which will allow them to determine current rates and or create strategies on future rates.
Tenants can identify if their rents are consistent with current market conditions.
This is often used in negotiations for lease renewals or a relocation analysis for Tenants.