You have finally decided to rent out your home. You have a marketing plan in place and you are in need of tenants. The major step, though, is to determine how much you are willing to rent your home out for. However, what are the factors that really affect the rental value of your property? Here is a list of common factors:
1. The number of bedrooms and bathrooms
This is the most obvious factor that determines the value of your rental property. If you have 2 houses with the same number of bedrooms but not bathrooms, it is most likely that the one with the highest number of bathrooms would be valued at a higher price.
2. Size of your rental property
The size of your property can have a serious impact on your rental value. The more the size, the more the rental value. Tenants would be willing to pay a high rent for more space than more for less space.
The more the modern amenities and features a rental property has, the more the rental income to be received. Good tiles, POP ceilings, pipe borne water can go a long way in increasing your rental value.
Just like you consider the location when buying a home, the location your rental property sits on is a major consideration as it affects what your rental value should be. Tenants often times look for safe environments and are drawn to areas with good roads, good power supply, water and entertainment spots. Properties located in areas that have these can be easily availed at a high rental value.
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A nice backyard, front yard, a big compound or any other outdoor attraction can increase your rental value.
The way landlords in the area offer similar properties would impact how much you can put your property up for rent especially if they offer the same facilities as you. You may have to value your property same as them or even lower in order to attract tenants
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7. Rental property demand
As a property owner, you should pay attention to the fluctuating market demands as it gives you an upper hand in terms of deciding the rental value. For example, if the demand for properties is more than what is available, the properties should automatically have a higher rental price.
8. Property Condition
Property values can vary considerably depending upon the property’s condition. Everything from the age of the property to the interior of the house can influence your rental value. Exactly how valuable the property is, depends on how desirable the features are and whether the neighboring properties lack this feature. A recent remodel or upgrade can also add considerably to the property’s rental value.
9. Lack of parking
A property with no or limited parking can be viewed as less valuable than those with one as some tenants would love a secure parking space, especially in a heavily populated area.