Setting rental valuations can be a tricky business. An error of one or two percent might seem tiny, but when you add this up over the course of a lease agreement, that could be a lot of money you lose out on.
That's why you need a strategic approach to setting prices. In this guide, we'll dispel some common property price myths that can lead landlords to make costly errors.
Property Size Is the Primary Factor
While a massive mansion is going to be more expensive than a tiny one-bedroom apartment, size isn't as big a driver as people think when it comes to rent prices.
When tenants view property size, they will usually compare it against other properties in the same neighborhood. They'll also compare the property condition and whether it's in a sought-after location.
Rent Prices Stay the Same All Year
The month you choose to advertise your rental could impact the rent price. Seasonal trends happen; if you don't monitor them, you could inadvertently underprice or overprice your property.
Demand can often peak at the start of the school year, and if there is an upcoming event, demand may be higher than usual.
You should also remember that since prices aren't static, you have the freedom to change them. Always look at what's happening in the market and competitor prices to ensure your rents reflect broader trends.
New Properties Command Premium Prices
New properties have a certain appeal that can make them desirable. They often come with state-of-the-art technology and designer interiors, so you will typically find them listed at a high asking price.
However, don't assume this means older prices are less sought-after. Traditional or historic properties have a charm that's hard to replicate, and their uniqueness could help you list them at a high price.
Low Prices Make Your Property More Competitive
Having the lowest-priced rental in a neighborhood might seem like a quick win.
It's easy to assume your property will get snapped up by people eager to secure a great deal. But while lowering a rental rate can sometimes help secure a lease, it doesn't always work out that way.
Sometimes, a lack of interest is due to a short-term dip in demand, and it may be worth holding out until the market picks up again rather than settling on a price that impacts your long-term profits.
Upgrades Increase Your Asking Price
Upgrades don't always increase rental property pricing. It often depends on other factors, like the location and property condition.
If part of your property looks worn, that could put off buyers, in which case an upgrade is worth it. But that may be enough to secure a tenant and not necessarily to raise the asking price.
Finalizing Your Rental Valuation in Marietta
It's essential to take your time before deciding on a rental valuation. Without the proper research, you could lose out on potential income. Use this guide to help you.
PMI Cobb's expert real estate team is here to help you with a Marietta rental valuation, which is why we offer a free online rental analysis. Complete yours now by entering your property address here.
