PROPERTY

MANAGEMENT SYSTEM
RESIDENTIAL MARKET ANALYSIS
PREPAREDBY:KRISTINEMAYN.DECENA

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 Market surveys of comparable residential properties
and economic conditions in the immediate area are
absolutely essential for two reasons:

1. To establish a rental schedule for the apartments

or single family dwellings
2. To gauge the property’s viability as an income-
producing investment

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Source: https://cesource.com/courses/Property_Management_9e.pdf
 ESTABLISHING A RENTAL SCHEDULE

The residential managers must analyze the rental

values of comparable properties in the area.
Many managers will shop other properties to see
the space that is being rented, the amenities
offered, and at what value. Reading the
competitor’s advertising is another way to learn
of competing market values

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Source: https://cesource.com/courses/Property_Management_9e.pdf
 ESTABLISHING A RENTAL SCHEDULE

This comparative analysis measures and records data

such as size, location, amenities and rental structures
for buildings similar to the subject property (Figure
1). After the relative market value of the space is
determined, a base rental can be established for each
type of apartment. This base rate should be adjusted
to reflect preferential location, view, exposure, size,
or design. An increase in the base rate might also be
justified if the occupancy level in the neighborhood
is 95% or better, indicating a heavy consumer
demand. 5
Source: https://cesource.com/courses/Property_Management_9e.pdf
 Figure 1: Comparative Analysis

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Source: https://cesource.com/courses/Property_Management_9e.pdf
 ESTABLISHING A RENTAL SCHEDULE

Employment and income data collected for the

neighborhood should serve as a touchstone for
setting the residential rental schedule. Because of
rising costs, the increasing number of working
couples, and the trend toward smaller families, may
persons are willing to spend a higher percentage of
their income on better living accommodation.

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Source: https://cesource.com/courses/Property_Management_9e.pdf
 GAUGING
PROFITABILITY
Gathering demographic information can assist
the manager in making recommendation to
increase profitability. However, it is not
sufficient for the manager merely to be aware of
the total number of persons in an area; he/she
must also know the size of the average family to
determine the type and number of housing units
needed.

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Source: https://cesource.com/courses/Property_Management_9e.pdf
 GAUGING
PROFITABILITY
The manager must analyze current population shifts
in terms of land use and income level. Such shifts
may be caused by increases population mobility,
unsettled economic conditions, changes in family
size and structure, and extended longevity because
of improved health care.
The implications for the future of neighborhood and for the manager’s
property are quite different between an increase that stems from influx
of middle-income families into an expanding community and one that
is due to overcrowding in low-rent buildings.
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Source: https://cesource.com/courses/Property_Management_9e.pdf