Real estate is one of the most stable, profitable investments available, especially if you employ a skilled property management firm to represent your interests and ensure a reliable stream of income. However, determining the profitability of your rental assets can be a challenge, so Nova Property Management, Anchorage’s leading property managers, would like to offer some insight on determining the value of your investment property.

Sales Comparison

This common approach involves comparing the investment property to similar properties that have sold in the same area. A thorough sales comparison requires an in-depth knowledge of the local market along with the ability to illustrate trends with historical data. This is a flexible metric, helping you to determine a fair selling price as well as the average amount you can expect to collect in rent every month.

Capital Asset Pricing Model

This value comparison includes other factors that determine an asset's worth, incorporating both the risk and the opportunity cost. When considering purchasing or investing further in a piece of property, this model encourages investors to compare whether their money brings in a higher rate of return in another vehicle that carries less risk.

Regardless of how you value a piece of property, having an effective and efficient property manager is key to achieving the highest return possible from your investment property. Whether you own apartment buildings or a single family home, Nova Property Management has the expertise to make sure you collect the highest rate of return possible. Visit their website to learn more about their services, or call (907) 522-1332 to discuss your needs with a member of the team today.