Greenville, South Carolina was recently ranked the second-best SC city for real estate investors. With the right funding, you can find some great properties in the area, and the demand for rentals is strong in this fraught real estate market.
Once you've purchased a rental property, how much should you charge in rent? Naturally, you want to maximize your profits. However, over-valuing your rental price can slow down interest and diminish your applicant pool.
A rental valuation can help in this department, yet many investors hesitate to get one. Read on as we bust some of the most common myths about rental valuation in Greenville.
Myth 1: Rent Should Reflect Sale Value
As you grow your investment portfolio, you're juggling quite a few mortgage payments. You know how much your property is worth because you just went through the process of buying it. Can you model your rent off of your expenses?
Property value for renters doesn't align 100% with property value for buyers. Hot renter commodities like in-unit laundry or easy public transportation access can bump up a rental valuation.
If you're not evaluating your property through the eyes of a renter, you may be undercharging for rent.
Myth 2: Higher Rental Prices Always Yield Higher Profits
Under Greenville laws, landlords aren't subject to rent control. The only real limitation is that you have to wait until the start of a new lease, whether that's a lease renewal or new tenant onboarding, to raise rent.
Does that mean that it's in your best interest to raise your rent as much as you want? The short answer is no.
When you start overcharging for rent, you make your property less appealing to new and current tenants. If you're facing high tenant turnover or vacancy rates, it's time to get another rental valuation.
Myth 3: There's Nothing You Can Do to Improve Your Rental Valuation
Some landlords avoid rental valuations because they're afraid they won't like what they find. However, you're better off knowing the truth about your property. That way, you can make methodical improvements to raise the value and increase rent.
For some landlords, that means catching up on some basic issues like repainting walls, replacing old carpets, or updating kitchen appliances. This is a good time to take care of any maintenance issues you've been neglecting. If your property is in good shape, consider some upgrades that will appeal to renters, like improved closet space or remodeled bathrooms.
Call PMI Accelerate for Accurate Rental Valuations and More
Greenville offers great investment opportunities thanks to reasonable prices and high rental demand. If you find that you're struggling to find or maintain great tenants, it's time for an honest rental valuation. With PMI Accelerate, you can get a rental valuation at no cost.
PMI Accelerate is one of Greenville's leading full-service property management companies. We offer customizable packages that can include everything from tenant screening to maintenance oversight to accounting. Get started with your free rental valuation conducted by our expert property managers and find out how we can boost your profits.
