Greenville's rent prices are going up higher than the national average.
If you're a property owner in Greenville, this is welcome news. The chance to boost your return on investment is something you can't pass up, but deciding on rental prices can be a delicate process. To get a good sense of what you should be charging for your property, you must perform a rental valuation.
Today, we'll explain just how to do that and help you come up with a pricing strategy that attracts tenants and keeps money flowing into your rental. Keep reading and you won't have to sweat rental prices anymore.
Compare Properties
The first method in determining accurate rental prices is to compare your property to other similar properties in your area. There's so much that can affect a rental valuation, but none is more significant than the area of Greenville where your property is situated.
Look at similar-sized properties in your area with roughly the same square footage and number of bedrooms. Make sure to look at whether the property has more or different amenities to yours, as these can sometimes make a big difference in how much rent a landlord charges.
It's important to do this because all tenants are going to do the same. Attracting tenants is about offering something unique, but it's also about offering competitive rates. If you're going to keep vacancy rates down, your rental prices can be significantly higher than other units in your area.
Consider the Amenities
We mentioned amenities above - they factor into your rental valuation in a big way. It's not just the in-house amenities, such as a dishwasher or washer and dryer, that matter (although they do). It's also the amenities in the property's direct vicinity that will generate interest in your rental property.
Some of the things that can bring more renters to your property are access to transit, local restaurants/bars/cafes, parks, schools, and proximity to major roadways. Convenience is a major asset to any renter. If your property offers plenty of local amenities, you can raise your rental prices.
Account for Your Financial Needs
The last important thing to do when evaluating your rental prices is to think about your financial investment. There are countless methods for determining rental value, from capital asset pricing on the complicated end to gross rent multiplier on the simpler end.
A popular suggestion is to charge between 0.8% and 1.1% of the value of your home per month for rent. If your home is $230,000 - the average in Greenville - rent comes out to $1,840 per month.
This is quite a bit higher than the average rent price in Greenville, however. Many investors will convert a single-family home into multiple units to increase their rental income.
Hire a Property Manager to Help with Your Rental Valuation
Deciding on a pricing strategy can be tricky, whether you're in New York City or Greenville. If you need a bit of assistance performing your rental valuation, hiring an experienced property manager might be a good idea.
Flagship Realty Group is Greenville's top option for comprehensive property management. Our services include helping you determine rental prices, and everything else that goes with running a rental as well, from tenant screening to rent collection. Contact us today to learn more.
