A rental valuation can sometimes feel like a complicated science. One extra dollar on the rent is enough to make people walk backward out the door, especially in a competitive real estate market in Jacksonville, Florida.
That's why you need to know the rules about getting it right.
If you have already done some research, you may have read some confusing and contradictory tips about rent prices. We've put together this guide to dispel those myths.
New Homes Have Higher Rates
It's tempting to think that having a new property will allow you to charge premium rental rates. After all, these often boast state-of-the-art showers, kitchens, and pristine interiors. But new doesn't always equate to expensive.
Older properties have a charm that's hard to match. Historical buildings with a high-quality interior are equally sought-after, for example.
A High Square Footage Earns Higher Rents
Imagine two apartments in the same building, both in excellent condition. If one has twice the square footage of the other, it's natural to assume it will command a higher rent. But don't apply this rule universally.
If you aren't comparing like for like, property size has less impact on rental prices than you might think. Location, amenities, and property condition are more important.
Low Rents Make a Property Appear Undesirable
A common marketing ploy is never to be the cheapest brand on the market because it suggests something undesirable or low quality about that product.
Some people believe the same applies to investment properties and that asking for a low rate will make your property less appealing.
However, that's not the case. Low pricing in the Jacksonville rental market can be a strategic decision to deal with economic fluctuations.
Rent Prices Are Fixed
Landlords find it hard to decide on a rate because it feels like a long-term decision. There is an assumption with any rental property pricing strategy that you can't change that rate once you have advertised your property.
However, that's not always true. You can demand more if market conditions make your property more attractive, provided you haven't already signed a lease with a tenant.
It's essential to remain agile with pricing in a competitive or fluctuating market.
Property Upgrades Always Command a Higher Rent
Investing in your property is vital for any real estate business, but one of the main rental pricing misconceptions is that upgrades automatically boost your rental price.
Some upgrades will make your property safer and more inhabitable but won't necessarily raise your asking price. Nevertheless, it is essential to ensure your property is as inhabitable as possible.
Not only will that secure you a loyal tenant, but it's also suitable for the long-term value of your real estate investment.
Rental Valuation: Getting the Most for Your Property
A rental valuation can be scary if this is your first property. But don't fall for these myths.
You could have a rent price higher than you expect. It's essential to do your research and consult with real estate experts.
Our team can offer that expertise. At PMI River City, we understand the demands of real estate and provide a full suite of services, including valuation support. We also offer a free rental analysis for your Jacksonville property rentals, which you can find here.
