It’s every potential landlord’s burning question! Every rental property is unique, just like a snowflake. But while you may think you know what your rental property is worth, you still have to ask yourself: “How much can I really earn from my property?”
The answer is based on a number of factors:
- The Idaho Falls Rental Market
- Property Location and Pricing
- Property Size and Condition
While some of these factors are in your control, others are not. In this post, we will look at how each of these factors plays a role in determining the value of your rental property, and what you can do to maximize your rental income.
The Idaho Falls Rental Market
This is the one factor that is completely out of your control. The strength of the current rental market is determined by the demand for homes like yours, which ultimately determines the price you place on your rental home.
Before you price your property, look at the current market. Familiarize yourself with what the homes that are similar to yours and in your area are renting for. Do a comparative analysis so you can be aware of how your property measures up. With renter preferences changing often, and residents being more educated than ever, qualified renters won’t be willing to pay more than what the market dictates.
Property Location and Pricing
Your property’s location will influence its price. If you have a single-family home in a neighborhood in a good school district, you’ll be able to charge more than if your property was in a less desirable location without access to good schools, commuter routes, and more. As a general note, properties that are more remote typically rent for less.
Once you’ve purchased a property, you can’t change its location, so it’s essential to consider location carefully when evaluating a potential investment property.
Property Size and Condition
The size of your home will also impact the price. For single-family homes, a three-bed/two-bath home will typically earn more than a home with just one bathroom or two bedrooms. However, a condo or loft space downtown doesn’t necessarily need the three bedrooms in order to bring in top-dollar rents. In cases like these, amenities will make more of an impact than size.
Property conditions are a factor that you are able to control. When you allow your property to look run down, your rental income will also be down.
When considering the condition of your property, ask yourself, “Would I live here?”
If your answer is no, you may need to consider strategic renovations and upgrades that could make your property more desirable. Improvements like fresh paint, new flooring, even simple improvements like new faucets and cabinet hardware will allow you to charge more in rent. Install better lighting, replace old and dying appliances with energy-efficient models, and power wash the exterior. Not only will these minor improvements and investments raise your rent, they’ll also attract higher quality residents.
Need Personalized Advice on How Much to Charge in Rent?
We’re here to help! We’re experts in Property Management in the Idaho Falls market. Contact us at Jacob Grant Property Management for a free consultation and to learn more today!
