Charlottesville is located in Albemarle County, Virginia, where the average monthly rent is $1300.
Do you own rental properties in Charlottesville? If so, you know that investment properties can help you generate a lot of income if done right.
Property managers in Charlottesville advise clients to explore whether or not the property will get a good return on investment (ROI) to make better-informed decisions regarding rental property investments.
Is it your goal to maximize the investment potential of your real estate in Charlottesville, VA? Keep reading to learn three tips for conducting a rental valuation.
What is Rental Valuation?
When you are looking to invest in a property, it's important to identify the current and economic value before making the investment.
To come up with that figure, a number of factors come into play. What is the age of the home? Where is it located? What is the square footage? What are the current market conditions?
Rental valuation will show whether the property is an income-producing investment.
Conducting a Rental Valuation
Make the most of your rental property by using various rental valuation methods. Here are three tips for conducting a rental valuation.
1. Market Research
Take the time to do a thorough market research. This will help you avoid owning a money pit and instead generate income.
Look at the market you're considering. Evaluate the factors that will attract renters. What are the amenities in the area? Renters look at things like the school system, restaurants, things to do, and green space.
Is this location prime for long-term or short-term renters? Think about the costs associated with finding good tenants to keep your costs low.
Examine the potential costs of the property. Does it need repairs or updates? Consider any costs that will put a dent in your income.
2. How Does the Property Stack Up to Others in the Area?
Use comparable rentals in the area. Find similar properties and calculate the selling price per square foot. Look at properties that sold within the last couple of months for more accurate numbers.
The units you use as comps should have the same number of bedrooms, comparable square footage, and the same quality of amenities.
3. Conduct a Risk Analysis
Being prepared for potential risks will help you stay above water if and when they happen. Conducting a risk analysis will help you navigate the volatility of the real estate industry.
Protect your investment by analyzing factors like utilities, property taxes, and government real estate policies. These things can change without notice, so keep that in mind as well.
Assign a risk value for each factor to calculate the risk factor score for the property.
Rental Valuation in Charlottesville, VA
Conducting a rental valuation is an essential part of your upfront research. A property management company can help you gather this important information.
PMI Commonwealth are the Charlottesville property managers you need to help you make informed decisions that will increase your bottom line. We are dedicated to providing our clients in the Charlottesville and Blacksburg areas of Virginia with excellent customer service by maximizing owner profitability.
Contact us today through our website or by calling 434.326.4786 to set up a consultation.