There are multiple ways to become a landlord in Charlotte North Carolina. Some people invest in real estate properties for the sole purpose of turning them into rental homes. Conversely, you might inherit a home that provides an opportunity to develop a passive income stream.
Other people become landlords when they move into a new home and decide not to sell their old one. Instead, they rent it out to tenants. This route can have a myriad of benefits.
No matter what path led you to where you are, however, you need to understand the importance of your rental valuation. This evaluation will dictate how much the property is worth and how much you can fairly charge for rent.
But how can you calculate property value? What affects the value of your rental?
Keep reading for everything you need to know.
Location
Location is one of the most important determining factors of rental valuation. Charlotte North Carolina has a certain cost of living, which naturally impacts the values of local homes. However, these figures also vary from neighborhood to neighborhood.
A new, safe neighborhood that's moderated by an HOA, for example, will contain more valuable homes. These types of neighborhoods are considered more desirable. Therefore, you can also charge more for rent in these areas.
An old neighborhood within the same city, on the other hand, will have more affordable homes. Yet, if you invest in a rental property here, you won't be able to charge as much for rent.
Size
Your rental valuation will also hinge on the size of the property you own. For example, a small two-bedroom home with one bathroom will not have the same rental value as a large home with five bedrooms and three bathrooms.
Therefore, your rental valuation must take total square footage into account. More living space means higher rent.
In most cases, a large plot of land will also allow you to charge more for rent, particularly if the lot is fenced in. This will give the tenants the space for children, outdoor activities, entertaining, pets, and more.
Features and Amenities
Next, rental property value is higher for homes with certain amenities, luxuries, and features. For example, most tenants will pay more if the rental unit offers in-house laundry. Other valuable features include:
- Updated kitchens
- Off-street parking
- Garages, sheds, and other exterior buildings
- Outdoor living spaces
- Finished basements
- Etc.
Think about it from the tenant's point of view. If you were a renter, what features would you be willing to pay more for?
Lease Terms and Conditions
Finally, to value a real estate property accurately, you need to consider the terms and conditions of your lease agreement. For example, you can charge tenants extra if they have pets. You can also increase rent based on the number of people on the lease.
Additionally, some people are willing to pay more for freedom and flexibility. You can charge a higher rent if you offer month-to-month lease agreements.
Yes, this provides less security for you, but it also allows you to charge more. A short-term unit could hold a higher rental valuation.
Need a Rental Valuation in Charlotte North Carolina?
If you're having trouble trying to calculate property value, we hope this article helps clear a few things up. And if you need hands-on assistance, we're here for you.
Contact us today to check out our property management services. If you need us to, we'll conduct a rental valuation to help you understand exactly how much your property is worth and how much you should be charging for rent.
