If you're going to maximize your income as a landlord, you need to perform a rental valuation on every potential investment property.
Before you purchase a property to rent out, you need to spend time figuring out how much money it'll generate - this is a rental valuation. Failing to do a valuation will result in money left on the table or rental vacancies, respectively.
Today, we'll give you three important tips for conducting a rental valuation in Reno. With the help of a good property management company, you can nail your valuation on the first try. Read on and learn how it's done.
1. Perform Market Research
The first thing any new landlord should do when they choose to purchase a rental property is perform market research. Putting the time into doing this research will prevent you from wasting your money and help you generate income quickly.
Think about the factors that will attract Reno renters to a property, such as local amenities and the overall quality of the property. Look at the amenities in your local area, such as parks, schools, restaurants, and coffee shops. These things will attract renters.
If your area is low on amenities, you can still rely on a good property to bring renters in. Consider whether or not it might be worth your while to upgrade certain aspects of your investment - purchasing new appliances, replacing windows, landscaping, etc.
2. Compare Properties
A big part of a rental valuation involves looking at other similar properties in the neighborhood. You're not going to attract renters if you're charging far more than other rentals without providing more amenities.
Pricing your units competitively will help you find tenants quickly. That being said, you don't want to charge too little for rent because you'll be leaving money on the table. Let your fellow landlords guide you on how much to charge for rent.
3. Risk Analysis
The last important component of a rental valuation is a risk analysis. When you're aware of all potential risks around your property, you can take the necessary steps to prevent any costly emergencies and unforeseen expenses. A risk analysis also helps you navigate the ups and downs of the rental market in Reno.
You'll look at things like property taxes and utility costs, as well as real estate policies in Reno and Nevada. You never know when changes to these things could occur that drastically affect your bottom line.
It's also important to look at the property itself. Having a thorough property inspection done before you buy will unearth any hidden issues that could cost you big money.
Let Reno Property Managers Help You with Your Rental Valuation
A rental valuation is an important part of doing business, as you can see. It can be complicated and time-consuming, however, so hiring a good property manager to help you look into everything we've discussed is always a good idea.
Dickson Realty is a top property management company in Reno. Not only can we help you perform a rental valuation on your new investment property, but we also offer a wide range of other property management services. Contact us today to find out how we can help.
