If you've always wanted to be a landlord in Raleigh, NC, we recommend making this dream a reality. After all, landlords here make quite a hefty income; according to ZipRecruiter.com, they make an average annual pay of $84,693. The highest earners even make upwards of $147,000,
However, to maximize your income potential, you must first learn to distinguish the truth from the myths surrounding rental valuation. Otherwise, you stand to lose profits if you set a price that's either too high or too low.
The property management experts at PMI Capital City RTP will help clarify the matter, so please read on.
Myth: Rental Valuation Is a Luxury and Not a Necessity
The truth: It's the opposite.
Rental valuation is necessary because, without it, you won't be able to determine the rates of comparable Raleigh, NC, rentals. And if you don't know how much they charge, you risk overcharging or undercharging. Both are property pricing errors that can significantly impact your investment property returns.
If you charge more than what current rental market trends demand, you'll have difficulty attracting and retaining high-quality tenants. After all, if they can live somewhere else similar for less, there's little to no reason for them to stay in your property.
Conversely, if you undercharge, you'll earn too little profit. You may not even make any income if you set your price far below what you should.
Myth: No Rent Control Means Rental Valuation Isn't Necessary
The truth: As WRAL.com points out, North Carolina has no rent control laws. However, it may also be because of this that half of people who live in the state and Raleigh's Wake County spend over 30% of their monthly income on rent alone.
So, even though you can technically charge and increase rent as you fit, it's not a good idea. It may result in your prospective and existing tenants becoming cost-burdened. The longer that high rents burden renters, the more likely they will be unable to pay, much less renew their lease agreement.
Non-payment and lease terminations can also affect your income, so you'd want to avoid them. Pricing your rental right through property valuation is an effective strategy to prevent these problems.
Myth: Rental Property Valuation Is Expensive
The truth: It's not. If you partner with the right company, you can get a free rental market analysis and property valuation!
For instance, PMI Capital City RTP provides complimentary rental property analysis. We'll use our state-of-the-art technology to scout properties comparable to yours. We'll then use our findings to assist you in determining your property's rental pricing and income potential.
Get Your Complimentary Property Analysis Today
Remember: Rental valuation is crucial in setting fair rental rates and your long-term income and profit potential. So, never skip this step; it's a necessity, not a luxury. Luckily, you can get it for free from PMI Capital City RTP.
PMI Capital City RTP is a premier full-service real estate asset management provider in Raleigh, NC. We're an independent, veteran-owned and operated firm. However, we're also proud to be a franchisee of PMI, a leading expert in the property management sector that manages over $5 billion in assets.
Reach out to us today to request your complimentary property analysis and consultation!
