NUTS & BOLTS
CALCULATING VALUE
Understanding Rental Value
YOUR PROPERTY’S VALUE HAS A DIRECT IMPACT ON HOW MUCH YOU CAN CHARGE.
by Michael Jordan
chip for a higher rental rate. Tenants love the convenience of moving into a home that’s been outfitted with essential appli- ances. Washers and dryers are among the most highly sought-after appliances, and pre-owned, well-functioning machines can be purchased for less than half of most rentals’ monthly rate. SHOULD I ALWAYS KEEP APPLIANCES IN THE HOMES? A great home in a great neighbor- hood might not require applicances and other features to attract a tenant.
hen a home is marketed for rent, its curb appeal, neighborhood quality and location all affect the base monthly rate. Some homes do not require incentives to attract tenants, and some do. The difference between a home that will rent easier than another depends on several factors. Although location and home quality will set the general range for what a property will command, the rental price is never set in stone. A good landlord will take advantage of the opportunity to squeeze out every bit of profit that a rental home can generate. For example,
appliance availability and the home’s structural and aesthetic quality are factors that can be adjusted to influence rental rate. HOWCAN I INCREASE RENTAL RATE? Sometimes, as investors, we stumble across homes with all the bells and whis- tles already installed – washer, dryer, fridge, stove, even a microwave! Con- sider situations like this a huge conve- nience, to you and your tenant, and each item will eventually become a bargaining
82 | think realty magazine march :: april 2017
Made with FlippingBook Online document