Real estate investors are relying on data, metrics, analytics, and insights more than ever when it comes to making decisions about which properties to buy, how to improve those properties, and where to price them when it’s time to rent them out. Investors are also using data to evaluate the success of their properties and to make any necessary changes to their investment goals and their portfolios.
Market indicators are extremely local. For instance, in San Diego, some of the market indicators may include job growth, home sales, unemployment rates, mortgage rates, and population growth. These indicators can determine the strength of the market, availability of properties, and the potential for rental incomes. By analyzing these trends, you can determine whether the market is growing or declining, which can help you make informed investment decisions.
Let’s take a look at how we use data-driven decision making to help the investors we work with earn more and spend less on their assets.
Data-Driven Pricing and Understanding Rental Values
Investors need to know how much they should pay for the next property they acquire and what kind of rents that potential property might bring in. When it’s time to sell, you’ll want to know what a reasonable asking price might be.
For that, we turn to our market analytics and the data that we’re gathering in real time.
To optimize what you earn, this data has to be accurate. We actively gather data to create comparable analytics that can help with pricing, whether you’re buying or selling or renting something out. The more properties we manage, the more data we collect. Our growth feeds into your growth.
This helps us evaluate opportunities for investors like you, and it helps those investors make better decisions that align with their goals.
More than ever, investors count on property management data analytics to provide nuanced information using statistical models. We will analyze rent rolls and transactional data, and that leads us to making recommendations to you with more accuracy and efficiency.
Remaining Competitive in a San Diego Rental Market
In San Diego, real estate is fast-moving. Even the rental market is competitive, as the demand for well-maintained properties continues to increase and the supply struggles to keep up. It’s easy to feel a bit left behind when things shift and trends change.
Monitoring property management data analytics will allow you to stay more competitive, and your property management partner is your best resource for providing those analytics.
The only trends that matter are the trends that are present today. Stay ahead of your competition when pursuing new opportunities in fast-growing markets like San Diego. Think a few steps ahead of everyone else with the data you’re able to leverage.
With the right metrics, you can review all of the properties coming available in San Diego, or you can create a tracking system that’s specific to the type of property you care about, whether it’s multi-family only, HOA neighborhoods, or new construction.
The data we can now access is highly specific, and drilling down into the exact types of properties you’re looking for will enable you to save time and make better decisions. There’s no longer any need to scroll through endless listings. Our technology today allows us to offer investors a shorter, more targeted list of curated opportunities.
When you have access to this information before others on the market, you can remain flexible and take the necessary steps to position yourself better for what’s coming.
Key Performance Metrics (KPIs) within Market Trends
You cannot make good decisions if you don’t know how the existing properties in your investment portfolio are performing.
Understanding your own portfolio’s strengths and challenges is critical as you make decisions about renovations, lease renewals, 1031 exchanges, and other investment tools. Performance metrics matter. Are there specific properties that are underperforming? Or, do you have investment properties that are doing better than expected? Use good data and KPIs to review and reset investment goals, priorities, and action steps.
It’s about more than simply gathering data and making decisions. You can use these insights about your rental property’s performance in strategic ways. While analyzing income and expenses, for example, you’ll want to think about what this information means for tax benefits, funding, and audits. Maybe you’re earning more on single-family properties than the units you’re renting out in an apartment building. Maybe your turnover is higher in a specific neighborhood.
These are the data points that can drive strategic decisions.
Analyzing the Local Real Estate Market Metrics
When it comes to buying and selling investment properties, analyzing real estate market metrics plays a crucial role in data-driven decision making. Some of the metrics to look at include:
Average home prices
Days on the market
Number of active listings
Percentage of properties that have sold above their listing price
By analyzing these metrics, you can determine the average pricing in different areas, the market demand, and the sales history. Through this analysis, you can also identify potential investments that may provide a good return on investment.
Using Data to Evaluate Demographics
You may have noticed that the pool of residents is not only growing, it’s becoming more inclusive of nearly every demographic. We’re seeing retirees move to San Diego. We have people coming to town from all over the world.
This, too, is valuable data. Demographics can provide valuable insights into the real estate market. You can evaluate the demographics of an area by understanding the median age, education levels, household income, and employment rate. Having this information can help you determine which areas are in demand and where potential residents may be located.
We think of ourselves as investment partners, and we are eager to help you succeed and grow your portfolio. Let’s talk more about the data and the resources we can provide. As you’re making decisions about what to buy, what to sell, and how to improve your current real estate investments in order to earn more money, we can support you.
Please contact us at PURE Property Management when you’re ready to do more with your portfolio of San Diego investment properties.
