In February 2022, rent prices hit an annual peak increase of 16%. Since then, price growth has slowed down, but it's still more expensive than ever to rent.
This is good and bad news for landlords. You might be able to get away with high rent prices, but if prices are too high, it can deter renters from considering your property at all.
A rental valuation can help you determine how much you should ask for in rent payments. Understanding the importance of this analysis and debunking common pricing myths is key.
Keep reading to learn more.
Owners Can Charge Any Rent Price They Want
A common myth in the real estate world is that property owners can price their rentals as high as they want.
Rent prices are generally dictated by rental value and market prices. If there are no other rental properties nearby, an owner might get away with higher rent prices because of the laws of supply and demand.
If your rent price is too high compared to properties in the area, you will get few, if any, viewings. Properties with high prices stay on the rental market too long and have to be priced lower than they are worth eventually.
Owners need to familiarize themselves with rental prices and market trends to maximize revenue and decrease vacancy rates.
Rent Can Be Raised Whenever
Aspiring landlords think they can raise rent prices whenever they want. Rent controls and lease contracts exist to prevent this. Various counties in the United States set limits on how much rent can be raised.
In general, rent raises aren't allowed during the leasing period unless there is a vacancy. Before landlords can raise the rent after a lease contract is up, they have to provide a notice to tenants 30 to 60 days before the increase.
Price increases vary from state to state and regulations are often updated each year by the rental board. Read local housing laws in New York for up-to-date information.
Landlords Know the Property Rental Value Best
You might know the market well, but you can be biased toward your own property. Don't assume that you are the best person to complete a rental valuation.
A professional property management company employs the best people to offer landlords advice on rental property pricing. As experts in property valuation, you can be sure that you aren't overpricing your property.
You might think your property is the best in the area, but a data-driven rental analysis could say otherwise. It's always important to get an unbiased and data-backed estimate from professionals.
Let Us Handle Your Rental Valuation
There are a lot of myths when it comes to rental pricing in the Saratoga Springs area. Landlords must know the facts instead of blindly listening to the hearsay.
If you charge too high of rent, raise rent during the leasing period, or try to evaluate your property yourself, you might be looking at major problems in the long run.
Don't let your love for your property become a problem. Our property management team at Veno Properties can conduct an accurate rental valuation to give you invaluable data.
Contact us today to learn more about our services.