According to Community Impact, in the first quarter of 2024, the median price of single-family homes in Dallas-Fort Worth, Texas, amounted to $377,700. Condo pricing also jumped by 6.1%, rising to $265,200.
If you just spent (or are about to spend) that kind of money on a property you plan to rent out, it's best to get a rental valuation. It can help you determine if and how much you can profit from your property.
The experts at PMI DFW Properties will explore the most crucial factors that form the basis of a rental property assessment or valuation, so read on.
1. Fair Rental Rates
Here's a crucial piece of landlord advice: Always set fair rental rates.
If the rent is too high for the property's worth, it will be harder to attract tenants. Conversely, if you set it too low, you may not earn enough and even lose some.
However, with the right price, you can draw in quality tenants who are more likely to stay long-term. Not overpaying for rent can help encourage them to renew their lease. As such, fair rental rates are crucial to rental income maximization.
Luckily, one of the primary goals of rental valuation is to offer property owners insights into fair rental rates. To achieve this goal, it carefully assesses a property's characteristics, including its features, condition, and location.
2. The Property's Primary Characteristics
Just because a neighboring property rents for $2,000 doesn't mean the same rate applies to yours. You need to get your property valued so that the assessor can consider the following:
- Size of the property
- Number of bedrooms and bathrooms
- Existing amenities (e.g., HVAC system and included appliances)
- The overall condition of the property
Say your property is in top condition, then great! But if it needs many repairs to make it tenant-ready, you must factor in their cost when calculating your potential rental income.
3. The Property's Location-Related Factors
"Location, location, location."
You may think it's an overused statement, but it's not in real estate; location significantly affects property market value, as Investopedia points out.
For example, properties in areas with the following features or characteristics are more valuable and can rent for more:
- Highly developed
- Essential services (e.g., fire and police departments and healthcare facilities)
- Amenities, such as banking, shopping, and dining establishments
- Closeness to educational institutions and business or office districts
The factors above also play a role in determining up-and-coming neighborhoods in the Dallas-Fort Worth area. They may not be that highly developed now, but they have the potential to grow so they can transform and become among the most desirable. The more desirable they become, the higher the fair market rents of the properties here can get.
Get Your Free Rental Valuation Today
Now that you know more about the essential factors in rental valuation, the next step is to get yours for free.
Our full-service property management company, PMI DFW Properties, offers free rental valuation services. With these, we can help you determine how much you can profit from your property.
Speak with us today so we can get started on your complimentary, non-obligatory property analysis!
