Even experienced investors and rental property owners hesitate before assigning a rental value to their Charlotte investment properties. The market can change quickly, and you need to follow its trends and prices before you list your own home.
Determining the right rental price for your home depends on a number of factors. Ultimately, the amount you charge will depend on the strength of the local rental market. You cannot price your property much higher than what the market demands, otherwise it will be vacant for longer than necessary.
While you want to ask as much as you can, remember that overpricing your home can ultimately be more expensive than underpricing it. Study the market and get to know what homes similar to yours are renting for. Work with a Charlotte property management company so you’re accessing accurate and reliable data to make a comparative market analysis.
Here are some of the things that matter most when you’re pricing your property.
Consider Seasonal and Market Factors
Something that impacts the amount you can charge, which many owners find surprising, is the time of year that you’re listing the home. Late spring and summer months often bring in higher rents because it’s really when people prefer to move. There’s good weather and most families move between school years.
You also have to look at how saturated the Charlotte rental market is at the time you make your property available. If there are a lot of rental properties on the market similar to yours, you may not be able to ask for a higher rent. However, if there’s a high demand for homes like yours and few to be found, you can charge a bit more.
The market also moves based on tenant preferences. If you’re renting out the only home in your neighborhood with hardwood floors and there are enough renters looking for that upgrade, you can charge more than other properties might.
Property Location and Rental Price
Everyone knows that location is an important factor in real estate. You’ll earn more on your property when it’s located in a desirable location. If you are near good schools, easy commuter routes, and within proximity to shopping, grocery stores, and other types of amenities, you’ll be able to earn more in rent than if your home is more remote.
When you’re comparing your home to the competition in order to price it accurately, make sure you’re looking at homes in the same neighborhood as you. Rental prices can change from street to street and block to block. School districts are especially impactful in determining rental value, and you might find that the homes across the street from you are zoned to a different school, changing their rental value.
Property Condition Counts
There’s not much you can do about your property’s location. You cannot change its size to make it larger and worth more, unless you’re willing to take on expensive renovations. What you can control, however, is your property’s condition.
Well-maintained properties will earn more rent than those that are old, worn, and falling apart. Make sure your home is in excellent condition when you’re renting it out. You’ll earn higher rents and attract better tenants.
Pay attention to the work your property needs. Everything should be in good shape before you rent it out. Consider making a few small and inexpensive upgrades such as fresh paint, better floors, and new hardware such as lighting, drawer pulls, and faucets. These small things won’t cost you a lot, but they’ll help you earn more money every month.
We can help you price your home competitively and profitably. Contact your professional Charlotte property management partners at AM Realty for more information.