Real estate can be a great investment as it allows you to generate a recurring, long-term income.
If you're investing in properties and want to maximize your profits, you need to implement effective rental income strategies. Rental valuation determines how much you can generate from a property. If you own property in Bend, OR, understanding the factors that affect rental valuation will help you get the most out of your investments.
In this guide, we'll explore some of these key factors so you can make the best decisions. Keep reading for more.
1. Location
Location is one of the most important property worth factors. People will always be happy to pay more to live in a good spot.
Being close to city centers or business districts can increase the value of a property significantly. It's far more convenient and can reduce commute time.
Renters with families will want to live in good proximity to local schools. Various other amenities can also increase property value, such as:
- Supermarkets
- Public transport hubs
- Parks
- Restaurants
Many people will also consider the safety and cleanliness of a neighborhood when looking for a new home.
2. Property Characteristics
The different features and characteristics of a property are huge factors in the price. The size is one of the first things to consider. A larger property with more rooms will naturally be worth more.
If a property has additional features it can boost the price. Some common examples of such features include:
- Backyards
- Decks
- Pools
- Kitchen islands
- Smart technology
Things like these can be especially beneficial if other homes in the area don't have the same features.
You should also think about whether you will furnish the property yourself. A furnished property will typically have more value than an unfurnished one.
3. Condition and Age of the Property
Another key valuation factor is the condition of the property. People will always be willing to pay more for a home that's been looked after properly. It can be a good idea to carry out renovations and repairs before renting out your property; this is vital for maximizing rental value.
Newer properties tend to be worth more. Modern designs and energy-efficient features are very desirable. Renters also know that a newer home is less likely to have issues.
4. Market Supply and Demand
You should always look at the local market if you want to make an accurate rental assessment. The supply and demand can have a huge impact on rental value.
If there's a large supply of properties and not much demand, property values can drop. You'll need to price yours competitively if you want to attract potential tenants. If there's a lot of demand and not much supply, rental prices will typically be higher.
Professional Rental Valuation
Knowing how much to charge for your rental property is vital for maximizing your profits. Getting a professional rental valuation will help you do this.
PMI Central Oregon is a full-service real estate asset management company operating in Bend, OR, and the surrounding communities. Our experienced team can provide a thorough rental valuation so you know what your property is worth and can get the best return on your investment.
As a part of PMI, we use the latest technologies to help our clients maximize their profits. Get your free rental analysis today.
