Did you know that you can earn money without working a job for 40 hours a week? The way to do so is through passive income. You can earn passive income from investments such as bond funds, dividends, and renting out real estate.
Real estate, in particular, is a popular form of passive income because there is always some kind of property available for purchase. The problem is figuring out rental valuation. You don't want to charge too much or too little.
Here's your rental valuation guide on rental myths and how the industry really works.
All Properties Appreciate Equally
The first of the many rental property myths is that all properties appreciate equally over time. This isn't always the case, and values can vary wildly based on location, property condition, and market demand.
Some properties will go up in value, while others actually become less valuable over time if they aren't well-maintained.
High Rent Means High Profit
Another common myth is that you can make more money by charging higher rent. However, you'll learn that charging too much rent can result in more vacancies and a harder time filling them.
One of the best property pricing tips is to look at the other rental properties in your area. Look for comparable listings and how much they charge. Adjust your pricing based on theirs.
The Market is Always Strong
Despite popular belief, the rental market in Louisville is not always strong and reliable. The housing market is always fluctuating due to economic cycles, seasonal trends, and local developments.
For example, the market might slow down during the winter months when people spend most of their money on gifts or vacations. The local market could grow if there are new stores, clubs, or other shops opening up nearby.
It's important to keep track of market trends throughout the year so you can know the best times to invest or sell.
DIY Management is More Cost-Effective
The best landlord advice you'll get is to hire a property manager if you own multiple properties. These experts can handle anything from filling your rentals to maintaining your property.
They can even market your rental and reduce tenant turnover to help you make more money.
Renovations Equal More Value
First-time buyers may be tempted to renovate their investment to make it worth more. However, fixing up your property and adding new design elements won't always accomplish that goal.
Instead, focus on cost-effective renovations that appeal to all renters. This includes updating kitchens and bathrooms, as well as cleaning up the front yard.
Make Rental Valuation Easier
The problem with rental valuation is that you need to know a lot of different listing websites and how to navigate them. Many new property owners don't know that much about real estate, so that can prove difficult for them.
PMI Louisville provides property management you can trust in the Louisville area. We'll help you figure out your rental valuation as well as manage both your tenants and properties.
Contact us today to schedule a consultation and learn more.
