Knowing all the top factors that can add more value in pricing your rental property is important to both real estate agents in the United States and landlords as well.
Every investor wants to make the most of their investment, and for rental property owners, that means charging more for their rentals. But although the real estate industry is a stable source of income, the rental market is by no means a static one, and several factors affect its price.
You could learn how to maximize your profit by going to work for a property management company or by reading on to find out how to increase your rent. Stick around till the end of this article as we break down the factors that add value in pricing your rental property.
If you want to calculate property value based on rental income in Washington DC, then you must be ready to improve on the asset to avoid depreciation.
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Location is one of the most significant factors in valuing rental property. Think of it as the foundation of your home’s value, whereas everything else goes on top.
The first thing to consider in determining rental rates is the location. If you plan on attracting a young market, what’s the proximity to the closest university or central business district? The closer you are, the more you can charge.
Moreso, is the property in an attractive area? What’s the crime rate, and what are the surrounding neighborhoods like?
It would help if you also considered what amenities are close to your property. Can your tenants walk down the street to get more toilet paper at the store, or do they have to take a ten-minute bus ride? Proximity to neighborhood amenities like parks, stores, eateries, pharmacies, and more increases a home’s value because of the extra convenience.
2. Current condition
Rent generally correlates with the current condition of the house. Ready-to-move-in (i.e., furnished) apartments have a higher value on the rental market because tenants don’t have to bother with buying or moving their furniture.
But the current condition of the house not only refers to the pre-installed furniture and equipment. If your rental property needs a lot of work in terms of renovation, you can expect the price to be lower, especially if it’s an old house. It might be significantly worth your interest to undertake a remodeling to fix leaking pipes, install new countertops, and hire an exterminator to get rid of rodents lingering on the property.
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3. Home appliances and upgrades
Appliances and upgrades can significantly improve the value of your rental property. This tip is especially true if your apartment listing is in the semi-furnished or furnished market.
You have the most potential and options to increase your rent by upgrading the property’s bathrooms and kitchens. Easy kitchen upgrades could include refacing the worn cabinets or installing energy-efficient appliances. At the same time, a bathroom facelift could involve upgrading your light fixtures or anchoring a towel holder.
4. Building amenities in your rental property
Apart from the appliances in the house, another factor that tenants are willing to pay extra for are the amenities that make your property safer and more conducive.
Amenities like laundry facilities, internet, and security cameras could add to the appeal of your rental property. Moreso, you risk higher vacancies or hurting your rate if landlords near you provide these services.
If you are on a shoestring budget, you can partner with a CCTV system installation company near you and pay bit by bit as renters take the property one after the other.
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5. Curb appeal
People place a lot of value on the exterior of their house, and why shouldn’t they? It’s the first impression visitors have of their home, and it should speak well. In fact, 94% of top America’s real estate agents say buyers will pay more for a house with awesome curb appeal.
If the landscape of your rental property is impressive, you could win your prospective tenants over before they even walk through the door. So even if the interior doesn’t have the latest appliances and needs a few renovations, renters will still be willing to pay more for a curb that compliments the neighborhood nicely.
You don’t have to spend a lot to improve your curb appeal either. A well-trimmed yard, a lovely flower bed, and some garden ornaments could go a long way. It has been statistically proven that sprucing up your garden could increase your home’s value by up to 20%. That said, understand that your curb appeal is a critical factor that can add value in pricing your rental property.
6. Pet-friendly rental property
Can making my real estate rental property more pet-friendly improve its worth before investors? The answer is yes. Listing your property as pet-friendly gives you access to a broader pool of potential renters. That’s because pet owners as a demographic have a more challenging time finding accommodation.
After all, not every landlord is willing to put up with the possible damages and disturbance that come with it. But if you can overlook those issues, you could also increase the rental property price for the increased risk you’d have to bear.
Of course, implementing strict pet policies and charging an extra fee for pets in your tenants’ security deposit could easily outweigh the cons of allowing furry creatures into your building. Adding a smart device in your home like a Pet Camera can as well add more value in pricing your rental property in Washington DC.
Now you know factors that influence the value of your rental property
Different things may drive the value of a home up or down, and to get the best of your investment, you need to know what they are. As you can see, numerous factors influence the pricing of a rental property, so you can always choose the ones that fit within your budget and work on them.
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It could either be by scouting patiently for the following property to acquire, incorporating simple upgrades to get more from your kitchen space using the report presented to you from the pre-listing home inspection by the seller or home inspection by the buyer or opening up your doors for pet owners to take residence. Smart investors also know that it’s worth hiring a professional property manager to get the most potential from an investment.