When you decide you rent out your property, there are a plethora of factors that need to be considered, before deciding a realistic rental. If you fix a very aggressive rate, you’ll have a hard time finding a tenant, and if you price it too low, then you’d end up losing a significant some of money in the longer run.
So, let’s take a look at the various factors that should be taken into consideration, in order to assess the realistic rental value of a property.
Seeking Assistance from a Realtor
You can always seek professional help from a realtor, and ask a property management firm to appraise your property to determine the fair rental value.
There are a number of factors that your agent or property management company should consider before tagging your property with a specific rental value. Location is the primary factor in most cases, but it is important to consider that two different properties in the same area can have different values because of a host of reasons. Thus, it is important to understand that two similar building or properties on the same street are compared to get the best idea.
Exact Location Matters a Lot
When we say locality, it’s not just about the rough location of the property, but rather its actual location. Sometimes, even similar apartments on same street can have different value. There are more factors that can alter their prices. For example, one of those apartments can be right above a late night hangout place, and the other can be in a rather quieter region, and a family wouldn’t really want to stay in the former option, while the bachelors, or even a couple would love to do that!
Size and Amenities
If you’re offering a small studio apartment at a very high price, it’s certainly not a great thing to do. But, if you’ve got a luxurious 3-bedroom condominium, you can certainly expect good rentals for it. The additional amenities in the apartment/home also play a role in fixing the rental value of the property.
Making a Smart Investment in a Rental Property after Assessing High Rental
Who says that you need to be a landlord to assess the rental value of a property? Well, it may also happen that you come across a fantastic property, which has high rental value, but the owner of the property is forced to sell it at a throwaway price due to financial difficulties or personal reasons. Such opportunities are quite rare, and you must grab such opportunities with open arms, but how do you arrange the necessary finances? Well, you don’t necessarily need to have such high amounts in your bank to be able to buy rental properties with high rental values, and you can also avail a loan to purchase the same.
So, the bottom-line is that if you find a great investment opportunity, and need help with funding, mortgage lenders will certainly assist you in securing the funds for your dream house as well as a rental property that has the potential to fetch high monthly rentals.
If you are purchasing a property, then you need to know how to estimate its realistic value to be able to strike a profitable deal.