Every Investor’s Burning Question
Much like snowflakes, every rental property is unique.
But, while you might have an idea of how much your investment property is worth, you still have to ask yourself:
In reality, how much rent can I actually earn from my property?
The answer to this question is based on a number of factors:
- The Pittsburgh rental market
- Property location & pricing
- Size and condition of the property
Some of these factors are within your control, while others are not.
Let’s take a look at how each of these factors plays a role in determining your rental property’s value and what you can do to maximize your rental income.
The Pittsburgh Rental Market
One of the things you have no control over is the strength of the current rental market.
Obviously, you’ll hope to earn enough to cover your mortgage and other expenses, all while earning a bit of extra cash every month.
But ultimately, the price you place on your rental home will depend on what’s going on in the rental market – and whether there’s a demand for homes like yours.
Before you price your property, make sure you take a look at the market.
Get to know what homes similar to yours and in your area are renting for.
Do a comparative analysis so you know how your own home measures up.
The whims and preferences of renters often change, and residents are more educated than ever; qualified renters won’t be willing to pay more than what the market dictates.
Property Location and Pricing
Another consideration is location; your property’s location will influence its price.
If you have a single-family home in a neighborhood with a good school system, you’ll be able to charge a lot more than if your property was in a less desirable zip code without access to good schools, commuter routes, shopping, and recreation.
As a general note, properties that are more remote will often rent for less.
Once you’ve bought a property, you don’t have much control over its location; but, location is something to take into account when you’re considering an investment.
Size and Condition of the Property
The size of your home will also impact the price.
For single-family homes, a three-bedroom, two-bathroom home is usually going to earn more than a home with just one bathroom or two bedrooms.
However, a condo or loft space downtown doesn’t need the three bedrooms in order to bring in top dollar rents. In that case, amenities will make more of a difference.
Property condition is actually a factor that you can control; when you allow your property to look worn out and run down, you’re losing rent money.
When considering the condition of your property, an important question to ask yourself is, “Would I live here?”
If your answer is no, you may need to consider some strategic renovations or upgrades that could make your property more desirable.
You’ll be able to charge more in rent when you provide fresh paint, new floors, and even simple improvements like new faucets in the kitchen and bathrooms.
Replace your drawer pulls with brushed nickel, install better lighting, invest in replacing old and nearly-broken appliances with energy-efficient models.
Not only will these minor investments raise your rent, they’ll also attract better residents.
Need Personalized Advice on How Much to Charge in Rent?
We can help!
We’re experts in pricing rental properties in the Pittsburg market. Contact us at Arbors Management for a free consultation and to learn more today!