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# Rental market intelligence.

tenant_moveout_6                           Most owners and managers want to rent out fast but fail to consider long term effects.                                                     .

Rental market intelligence.

If you rent a bit lower than market rent but can rent out sooner, it is beneficial to owner, right ?

Not so fast, let us look at the numbers.

If market rent is $1000, but at $900 you can rent out 15 days earlier, owner think this is good enough. Really?

Let us take a look at the numbers –

$1000/month, annual income is $12,000; next year with 5% rent increase, second year income equal $12,600; and so on.

$900/month, annual income plus 15 days equal $11,250; next year with 10% rent increase (maximum allowed in California), second year income will be $11,880 and so on.

Do you see the difference ?                                                                                   Screenshot (106)

This is only the difference in gross income. Try to calculate ROI, CAP rate, Internal Rate of Return (IRR) … the difference is exponential.

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