Virginia has the 10th highest average rent price of all US states at $1,257 per month.
You can make a very good income from rental properties, but you need to be smart if you want to maximize your profits. There are plenty of myths surrounding rental property pricing. Knowing what's true and what isn't will help you charge the right amount for monthly rent.
Keep reading for a rundown of some of the biggest myths about rental valuation in Hampton Roads, VA.
You Can Set Whatever Rent You Want
If you own a property, you should be able to do whatever you want with it, right? Technically you can set whatever rental price you want - but not if you want to actually make money.
If you try to charge $5,000 a month for your property, for example, and other similar ones in the area charge $2,000, no one will show any interest in yours. House rent needs to be competitive so that you can secure tenants and make a solid income.
A property manager can tell you the value of your rental property along with how much you should reasonably charge for rent. This is vital if you want to maximize your profits.
You Can Raise Rent Whenever You Choose To
This is something that varies depending on location. Different states have varying rules regarding rent control.
In Virginia, there's no cap when it comes to raising rent, so you can increase it to whatever you want. Bear in mind, however, that if you try to increase your rent too much, tenants will likely want to leave.
You should also note that you can only raise the rent at the end of a lease term - not during. If you do want to raise the rent, you also need to give your tenants written notice at least 30 days before the first payment at the new rate.
You Know the Rental Value of Your Property Best
Landlords often think they know their property (and therefore the rental value) better than anyone else. Even for an experienced property investor, this generally isn't true.
There are all kinds of factors that can affect property value such as size, location, condition, and the local property market. Property managers have a solid understanding of all of these. With a professional property valuation, you can get a far more accurate idea of what your property is worth and how much you should charge for rent.
Professional Rental Valuation
Some of these myths may not seem overly important, but without having a good understanding of them you could end up charging too much or too little for rent. Doing this will limit how much money you can make from rental income.
It's worth having a professional property manager conduct a full rental valuation of your property. This will help you get the most out of it and make a better income.
Renters Warehouse Hampton Roads is a professional property management company that can help you out with a range of real estate services in Southeast Virginia. Book a free consultation with us today to find out more about how we can help you.