Rental homes are necessary to accommodate many of the over 278,000 people who live in Reno, NV, putting landlords in an excellent position to make handsome profits.
But to ensure you're maximizing your earnings, you need to know how to carry out a rental valuation. This process will help you determine the ideal price point to keep your property occupied and generate a monthly passive income.
Let's look at five landlord rental tips for conducting accurate valuations.
1. Compare Your Property with Similar Rentals
A simple way to estimate a rental property valuation is to look for nearby homes with the same number of rooms of comparable size. It's also important to consider features such as whether both homes have a backyard and if they are in a similar condition.
While this doesn't mean you can, or should, charge the same rental fees as another property, this method can help give you a basic valuation.
2. Evaluate Your Property's Condition
It stands to reason that you can charge more for a well-maintained rental home than one that needs a lot of work. Try to evaluate your home from a tenant's viewpoint and look for issues such as flaking paintwork or furnishings that have seen better days.
By making upgrades, you could be entitled to increase your rental fees.
3. Consider Your Rental's Location
Scenic locations, or ones that are close to local amenities, are often sought-after by tenants. Think about your rental property's proximity to transport links, attractions, and commercial centers.
If you're in a prime location, your rental valuation can be higher than other properties that don't provide these benefits.
4. Assess Market Demand
One of the most effective rental strategies is to assess the current market demand. This can fluctuate, and if you are renting your home when interest is high, you can earn more than when demand is low.
However, even when there are not as many tenants seeking rentals, you can offer incentives such as shorter-term contracts. This can help increase occupancy rates and bolster your rental valuation.
5. Request a Professional Rental Valuation
Estimating an accurate rental valuation isn't easy, and it's often best to seek professional property management advice. An experienced property expert will use the knowledge and skills they have built up over many years to provide you with a precise figure.
They'll also be able to advise you on how to keep your valuation high through techniques such as proactive property maintenance and ensuring your tenants are happy with your service while they are in your rental home.
PMI Diversified Properties Are Here to Help
Conducting a rental valuation is essential when you own an investment property. Not only will you be able to maximize your rental income, but you can price your property fairly to attract more tenants.
At PMI Diversified Properties, we have over 20 years of real estate experience. With a client-first attitude and the technical skills to help landlords succeed, we can help you get the most from your rental property.
To discuss your property management needs and start earning more, contact PMI Diversified Properties today.
