According to Gallup's 2024 "Best Investment Ratings," real estate remains the best long-term investment for Americans. It's been that way since 2014.
So, if you're looking for an investment opportunity in Vancouver, WA, look no further than its rental property market.
However, for your investment to pay off, you must do your due diligence and conduct a comprehensive rental valuation. Do the same if you already own property that you wish to turn into a passive income generator.
Our Invest West Management, LLC team has shared rental property appraisal tips to help you get started, so read on.
1. Determine Your Target Market
Establishing who you want to rent your properties to is vital, especially if you're just about to become a real estate investor in Vancouver, WA. You must base your future property's characteristics on your specific long-term target market.
For example, suppose you want a property to provide long-term, stable income. If so, your target market consists of the city's renters, who, according to the City of Vancouver Government, comprise 49% of its population. In this case, you'd want your investment property to be:
- Near offices or schools
- Close to essential services and amenities (e.g., fire and police departments, clinics, markets, etc.)
- In a family-friendly neighborhood
If you want to rent your property to vacationers, the ideal location is close to local attractions and tourist spots.
2. Look for Comparable Properties
To conduct an accurate rental market analysis, gather data about existing nearby properties comparable to the one you own or want to buy. Comparable properties are those with similar:
- Characteristics, such as number of bedrooms, bathrooms, and square footage
- Amenities, including appliances, HVAC systems, outdoor spaces, and landscaping
- Condition and age
Use rental listing websites to search for comparable rentals with specific filters (e.g., number of bedrooms, baths, etc.). Some sites also provide historical rent price trends and average lengths of listing time, so use these to your advantage.
3. Find out Similar Properties' Rental Rates
Once you've discovered comparable properties, check how much they rent for. Use your findings as ballpark figures when determining how much to rent out yours for.
4. Get Professional Help
If you don't have time to do all the steps above, consider having a real estate service professional perform the rental analysis or valuation on your behalf. Using their expert skills, local knowledge, and innovative technology, they can:
- Determine how much you can rent out your property for at its current state
- Provide rental income tips, such as strategies to increase property worth
- Help you avoid investing in properties with a high potential of being money pits
If you choose the right service provider, you can even get your rental analysis for free.
Get Your Free Rental Valuation Today
Now that you know how to conduct a rental valuation and that you can get one for free, consider partnering with us at Invest West Management, LLC.
We're a full-service property management and real estate sales company that's proudly served clients throughout Washington (including Vancouver) and Oregon for over 40 years. Many of our team members also have decades of industry experience. We can help you find the best properties to invest in and price your rentals right.
Connect with us today to request your free rental analysis!
