More than half of Hendersonville's population is looking for a place to rent. With such high demand, shouldn't it be a breeze to find and hang onto great tenants?
Unfortunately for area investors, it's not that simple. Everything from the condition of your property to the price you're charging for rent can have serious consequences on your vacancy rate.
A rental valuation can put you back on track, but some landlords steer clear of this practice. If you've been hesitant to put fresh eyes on your rental property value, read on as we bust some common myths about rental valuation.
Myth 1: Rental Property Value Never Changes
You knew the value of your rental property when you bought it several years ago. Why would you need to go back and perform a rental valuation now?
Rental valuations determine how much rental income your property can generate, not just your property value. A rental valuation will reflect things that matter most to tenants, like:
- Size
- Number of beds and baths
- Location
- Interior amenities
- Nearby amenities
If you've made any significant improvements that would attract tenants, it's likely that your rental valuation is higher than it used to be.
Myth 2: Rent Increases Are Always a Good Idea
On the flip side, maybe you've been increasing your rent every time a new lease begins. While there aren't currently any laws limiting how much you can increase rent between leases, it's possible to go too far.
Large rent increases year after year can price out your target market. If the neighborhood doesn't have much to offer or you haven't kept up with your property, it's not likely that you'll attract a new market with more disposable income.
In the end, you may need to reduce your rent to reduce vacancies and see a real profit from your real estate investment.
Myth 3: Rent Has to Cover All Costs
Some landlords prefer to base their rent solely around their projected property management costs, not around the value of their property. After all, what if you have a bad tenant who leaves your property in shambles?
One way to assuage this fear is to start doing regular inspections. Make sure you know what's going on with your rental properties and send a message to tenants that you expect them to prevent excessive damage.
Incentivize tenants to take care of their rental with deposits and fees. The security deposit is designed to provide a financial buffer when tenants cause excessive damage. Rent is not your only source of funding in these situations.
Get Your Hendersonville Rental Valuation Today
If you're struggling to secure good tenants, it's time to get a rental valuation. Thanks to PMI Blue Ridge, you can get your Hendersonville valuation at no cost.
We also offer property management services that can reduce your stress and your day-to-day responsibilities. Work with your own personal property manager to customize your plan and access everything from our nationally tested tenant portal to our experienced tenant relations experts. Start with your free rental valuation and find out more about how we can help.
