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How to Evaluate the Success of Your Long Beach Rental

Dustin Edwards • Apr 18, 2022

Evaluate Your Rental's Success Correctly

As new owners of a rental property in Long Beach CA, the main goal is maximize the value of your asset. With many ways to determine the value of a real estate asset, how can you determine if you are getting the most from your rental? Today we want to share a few key strategies you could use to evaluate the success of your Long Beach rental property.


Rental Amount vs Current Market

Determining a fair market rental value is key for the success of your Long Beach rental. When landlords fail to adjust to the current market, it can increase vacancy rates and lower the yield on the asset.


Some landlords may want to over charge their tenants, this can lead to empty units that would otherwise provide cash flow if priced fairly. On the other hand, undercharging for units can be a financial burden as you would be leaving money on the table month after month.


Much like the price of real estate, rents can change based on current market pricing, supply and demand of rentals. When deciding on a fair rental amount, you should use as many data sources as possible to establish a baseline for your rental. Learn how much comparable  units in your area are renting and consider factors such as: 

  • Square Footage
  • Number of Bedrooms/Bathrooms
  • Condition
  • Curb Appeal
  • Parking


Other elements that can help determine rental rates are:

  • What type of unit are you renting? Single Family, Apartments or Townhomes. Each type of property will have a different rental amount and demand.
  • What amenities are included in the unit? Air conditioning, washer/dryer or other appliances. 
  • Where is it located? Location is crucial as some neighborhoods are more desirable and fetch a higher rent price.


Yield vs. Value of the Asset

Rental yield measures profits generated annually from the investment as a percentage of its value. You can use your rental yield to evaluate the profit from your investment. High yield properties bring in steady income. Ideally you should be looking for a rental yield above 5% for stable rental income. Understanding and observing property values and their rental yields can be a helpful tool when investing money in your own Long Beach rental property.


Return on Investment (ROI)

Measuring your return on investment to determine your property’s profitability is important. ROI measures the profit that is made on an investment in the form of a percentage of the cost of said investment. It demonstrates the effectiveness and efficiency your investments in your property are being used in order to produce profits.


Although there is no defined formula for calculating ROI on a rental, due to there being too many variables. A simple way to calculate ROI is, subtract the initial value from the current value and divide the number by the beginning value.


ROI = (current value- initial value) ÷ initial value


Normally, a 10% to 15% return is considered good, though due to all the variables included with a rental property such as repairs, vacancies, and other unexpected costs the results can change greatly.


Tenant Occupancy Rate

The occupancy rate of rental properties can have an extreme effect on its profitability. Occupancy rate is the number of months in a year your property will be occupied by tenants. Generally keeping tenants long term makes the relationship between profits and occupancy a mostly positive correlation. 


There’s a number of circumstances that affect occupancy rate. Some can be controlled by either the landlord or
property management company like developing accurate rent estimates for your area, marketing your vacant property aggressively, and screening tenants to receive credit reports and rental history in order to find ideal tenants. While other circumstances are dictated by the market.


If you feel you need help evaluating the success of your Long Beach rental property feel free to call us at (562) 888-0247 or feel free to fill out our
free rental analysis to see what your rental could yield today.

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By Dustin Edwards 01 May, 2024
Everyone wants to feel safe in their homes. As an investment property owner, it's up to you to decide whether or not to include security measures in your property. Many of the costs associated with the security measures can be included in the rent, meaning not only can you keep your property safe, but you can earn more income in the long run. However, you would still want your tenants to have renters insurance to protect their assets. Today, we’ll discuss the top five security measures you can add to your property and why they're beneficial to you and your tenant. Security Cameras Cameras are probably one of the first security measures people think about when asked about security. Cameras provide more benefits than just surveillance. They provide an extra level of security for the safety of the tenants and their belongings. Additionally, security cameras can be useful when repairs are required. Cameras can aid in supervising repairs and maintenance to ensure you’re receiving the agreed-upon work. During vacancies when the property is empty, security cameras can help keep the property safe from potential intruders. Doorbell cameras are incredibly popular now. They provide the aforementioned safety of a camera that can be accessed remotely, as well as the ability to communicate with visitors. Although one must be careful never to say you're not home, just say you're unavailable to strangers. Security Lights Security lights with motion detectors are another effective tool when adding security measures to your property. These lights brightly if a potential intruder attempts to get near your home. They can provide enough illumination to see the intruder or, at the very least, scare them off. Nowadays, you can find a combination of security cameras and motion-activated security lights, such as the floodlight cam wired plus from Ring . Additionally, because these lights only turn on when motion is detected, they’re more cost-effective than traditional lights with a switch. Illuminate the Property Light generally deters intruders as it's more difficult to hide. Adding lighting to the landscaping can increase the security of the property while creating a relaxing atmosphere. Lights can also be used in other areas of the property to accent features such as trees, benches, or artwork. This can help your property stand out while giving your tenants an additional feeling of safety. Keyless Entry Keyless entry is seen as both a convenience feature and a security feature. They usually use an electronic passcode, biometric data, or grant access through a smartphone app. Physical keys can be lost, stolen, or duplicated. You reduce the risk of unauthorized entry by eliminating the need for a physical key to enter the property. Many keyless entry systems include several features, such as remote locking and monitoring. Although keyless entry is a great new technology for keeping your tenants and properties safe, they’re best used with other security systems. Security Company Nothing beats having an extra pair of eyes on your property for security. This is where security companies like ADT and SimpliSafe come in. While companies may deal with security in varying ways, they aim to protect your investment. While safety is the primary role of a security company, remember that many tenants may be willing to pay more for a premium amenity like a home security company. Keeping your property and tenants safe is incredibly important to the longevity of an investment property. If you’re looking to improve the security of your Long Beach rental property or need help managing your beach city rental property, we invite you to call us today at (562) 888-0247 or fill out our Owner Application online .
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