Over 50 percent of households in Columbus, Ohio, are renter-occupied. This is great news for property owners because it means more opportunities to find the right tenants.
But this begs the question, why is it so difficult to find and hang onto tenants in the first place? The answer could lie in your Columbus property pricing and the rent you're charging.
How much do you really know about rental valuation? Here are a few real estate myths you can never trust!
1. Landlords Determine the Rental Price
One of the most common rental market misconceptions is that the landlord has total power over the cost of rent, but this is just not true.
A landlord does have a majority say over what they set their rental price at. But most of the time, this is influenced by the property market and its current conditions. As well as local demand. So all in all, it's up to a landlord to set an appropriate price based on supply and demand.
2. The Lower Your Rent, the Better the Tenant Pool
Lowering your rent is not always a reliable strategy to attract more tenants. Sure, it might increase the volume of applications you receive - but this is not always a good thing.
First of all, it means more work for you, the landlord. You'll need to screen and background check every application, which is a time-consuming process. Second, you could attract the wrong type of tenant.
All of this could equate to a waste of time and resources as you sift through unreliable applicants, only attracted by the low price.
It's also important to think about your rental price from the renter's point of view. A potential applicant could ask the question ''But why is it priced so low?''. Lower-priced rent does not always look attractive as it could point to defects within your home or property.
3. Higher Rent Equates to More Profits
There is also a downside to charging higher rent, as it does not always guarantee greater profits. There reason for this is that certain states place a cap on what you can charge for rent. As a landlord, it's up to you to know and understand the legislation behind this and what's considered fair rental pricing.
Another factor behind this is that high rental prices drive away potential applicants. It can also derail your lease renewal process. This is why it's so important to fully understand Columbus property pricing and charge rent appropriately.
Professional Rental Valuation At Your Fingertips
Never underestimate the power of professional rental valuation when you can't quite figure out how to succeed in owning a rental property. Nothing can hurt your chances more than an over-valued rental price. So if you don't know what you should charge, this is where professional expertise can turn things around for you.
PMI Property Management, based in Columbus, Ohio, is here to guide you on your journey of owning property to rent. Want to learn more about how we can assist you? Tap into our owner's resources here.
