how do I analysis property rental values?

Answer 1

when you know all the rental rates, just sit down and analyze them

Answer 2

To analyze rental values you have to consider many variables such as:
1)location
2)access (on site parking etc, street parking)
3)size of structure (the larger the property the less the rent will be on a per sq. ft basis for commercial property- residential property is based on a whole not a per sq. ft basis.)
4)what expenses are paid by the tenant or landlord (if tenant pays taxes, utilities, maintenance the rent will be lower if landlord pays the rent will be higher)
5)market appeal-does the property have adequate appeal
6) market rentals- is the property higher or lower than other rentals in the area (if so why?)
7) What is the length of the leases- if for a longer period of time the better the chance it will be below market rent.

Answer 3

That 5-6% is what is referred to as your cap rate. Your return on investment. Essentially, the lower the cap, the more comservative the investment. Like buying stock in a large, steady, old company. You'll get a return, but not a bif one. 5% is awfully low. 6 sits there steady.

If you wanted something with a higher return, but steady with maybe a little risk, look for a 7.5-8 cap. You can find residential at an 8 cap too. I agree with the above performa.

Good luck.

Answer 4

Take the yearly income of the property and divide it by the property value then multiply by 100.

Gives a yearly percentage return.

Anything over 5/6% is good for residential

Answer 5

ASK ESTATE ANGENTS AROUND THE AREA, IF ITS ANYWHERE NEAR E1,E2,E3, CONTACT MA