How to create winning comparative market analyses

When it comes to property management, providing detailed, data-driven insights is a must-have. One of the best ways to do this is by providing your clients with a well-researched Comparative Market Analysis (CMA). While CMAs are often used in real estate sales, they’re just as important in property management – especially when it’s time to renew leases or discuss rental prices. In this post, we’ll break down how to create CMAs that really stand out and add value for your clients.

What exactly is a Comparative Market Analysis (CMA)?

Let’s start with the basics. A Comparative Market Analysis (CMA) is a report that compares a property’s value or rental price to similar properties in the same area. It gives property owners an idea of how their rental stacks up in today’s market. But it’s not just about the numbers – a good CMA also takes into account current market trends, recent lease renewals and the overall condition of the property compared to others.

In property management, a CMA can help with things like negotiating lease renewals, justifying rent increases or simply giving property owners peace of mind that their rental is competitive.

Why CMAs matter for property managers?

Creating and presenting CMAs shows your clients that you’re actively keeping track of the market and helping them make informed decisions. Here’s a few reasons why CMAs should be part of your property management toolkit.

• ‍They show your value: A well-researched CMA shows clients that you’re on top of market trends and actively working to protect their investment.‍
• They justify rent adjustments: If it’s time to increase or adjust rent, a CMA provides the data to back up your recommendations.‍
• They build trust: Regularly providing market insights strengthens your relationship with property owners and shows that you’re the expert they can rely on.

Steps to creating a winning CMA for property management clients

Ready to dive in? Here’s how to create a CMA that adds real value for your clients.

1. Collect the right data

The first step in any CMA is gathering the right data. You’ll want to look at similar properties in the same area – those with comparable size, amenities and condition. But don’t stop there, here’s some key pieces of data you’ll need:

• ‍Comparable properties: Find properties similar to the one you’re managing, ideally in the same suburb or nearby.‍
• Recent lease renewals: Take a look at recent lease renewals and how rental rates have changed.‍
• Current market trends: What’s happening in the rental market right now? Are rents rising or falling? What’s the average vacancy rate?

Using market analysis tools can make collecting this data a breeze - and if you’re looking for the latest innovations to simplify the process, Elevate '24 has you covered. Missed the event? No problem! You can still explore the new tools and features designed to take your CMAs to the next level by watching the Elevate '24 on-demand recording here.

2. Add some data analytics to the mix

While gathering data is essential, analysing it is where the magic happens. Data analytics allows you to look beyond the surface and see trends that aren’t immediately obvious. For example, if vacancy rates have been steadily decreasing, you might anticipate a future rent increase.

Using analytics in your CMAs can help you offer insights into where the market is headed, making your recommendations more valuable.

3. Tailor the CMAs to your client’s needs

Every property owner is different. Some are focused on maximising rental income, while others may prioritise keeping vacancy rates low. Make sure your CMA reflects your client’s specific goals. For instance, if your client is focused on tenant retention, highlight how the property’s rent compares to others in the area and whether it’s time for a rent adjustment or tenant loyalty strategy.

4. Make your CMA easy to understand

A great CMA isn’t just about gathering data – it’s about presenting it in a way that makes sense to your client. Use charts, graphs and visuals to simplify complex data and make it more digestible. Start your report with a summary that explains where the property stands in the current market, then follow up with detailed comparisons. And always explain the “why” behind your numbers so that clients understand the reasoning behind your recommendations.

Providing a detailed, well-researched Comparative Market Analysis is one of the best ways to deliver value to your property management clients. By leveraging market data and analytics, you can help them make smarter, more informed decisions about their properties. Whether you’re discussing a rent increase, advising on market trends or simply keeping them updated, a strong CMA will position you as their trusted advisor.

But why stop there? If you’re ready to deliver strong CMAs, Elevate '24 has all the latest updates you need. We’ve rolled out brand-new features that make creating data-driven, insightful CMAs easier than ever. Missed the live event? Don’t worry – you can still catch all the action by watching the Elevate '24 on-demand recording here or simply entering your details below.