Oklahoma City property values average out at around $250,000. It's one of the more affordable metropolitan areas for real estate investors to purchase properties. Are rental prices equally as affordable?
Knowing how much you paid for your house is only part of determining its value in rent. A thorough rental valuation will take into consideration everything from the neighborhood to the property's condition.
With the right partners, your rental valuation will even reveal how you can increase your monthly rental income. How does it work?
Read on to find out why you need a professional rental valuation before setting your rental prices.
Evaluating Property Owner Costs
When you're looking for better real estate portfolio management, the first step is to evaluate all of your upfront costs. Before you start thinking about your income, you need to determine how much you're spending on:
- Mortgage payments
- Insurance
- Property tax
- Maintenance
- Marketing
It's no secret that you need to make more than you spend to turn a profit. However, if your expenses outweigh the reasonable amount of rent you can expect to charge, you may need to make some changes.
Performing Thorough Market Research
New rental property owners may take a look at their monthly property expenses and say, "I'll charge 25% more than that." The problem is that without conducting market research, this approach can lead to under or overpricing.
Market research starts with your neighborhood. How much are people paying in rent nearby? What amenities will your renters have access to?
Next, narrow down that search even more by looking at rental properties with comparable:
- Square footage
- Number of bedrooms and bathrooms
- Property amenities (e.g., a gym, pool, or on-site laundry)
- Neighborhood amenities (e.g., access to public transportation or grocery stores)
- Overall conditions
While this process may reveal that you need to lower your rental prices, it can also boost your gross rental income by making your property more competitive.
Making Smart Improvements
As a property owner, maintaining the value of your rental property is a must. What if we told you that with the right rental valuation, you can learn smart ways to increase the value?
Real estate experts can assess your property and point you in the direction of value-add improvements. This can be as simple as new paint or as ambitious as a kitchen remodel.
During your rental valuation, you'll also learn more about what other rental properties have to offer. You can then get up to par with (or even exceed) the standard local renters have come to expect.
Get Your Oklahoma City Rental Valuation From PMI
If you're getting ready to rent out a property in Oklahoma City, start with a professional rental valuation. At PMI, our real estate experts will conduct thorough assessments and research to determine the true value of your rental property.
What if you're looking for more than just a rental valuation? PMI OKCity Local offers customizable property management services from leasing to maintenance to rent collection. Contact us today and let's start talking about strategies to boost your rental income.
