Have you ever browsed rental listings and wondered why a seemingly ordinary-looking home can command a staggeringly high rental price? Do they have a hidden bat cave lurking beneath the building?
Rental secrets aren't as far-fetched, fortunately. There are some practical reasons why your neighbor's property may reach a higher asking price than yours.
We'll reveal the answers in this short guide. Read on to learn the three things you must know about rental valuation in Kalispell, MT.
1. It's Important to Look at Local Prices for Similar Properties
One of the best ways to value a rental property is to compare and contrast local prices. By examining what price other property owners set, you can get a more accurate valuation.
The best way to do this is to compare size and amenities. Size is the most critical factor, as tenants expect to pay a certain amount based on floor size and bedroom numbers.
After that, the amenities will have an impact, including bathrooms, outdoor space, and parking.
When comparing rental prices in the area, it's also essential to consider the interior quality.
People will make more for high-end interiors and a home in excellent condition. If your home is in a better state than similar properties, you could command a slightly higher apartment rental income.
2. The Location Drives Rental Valuations
The property location will determine your rental valuation. Tenants will want to know the proximity to local amenities like schools, parks, or public transport.
When you have a property near the facilities that matter to tenants, it makes your home highly desirable. And you'll be able to ask for a higher rental price. However, the amenities that matter will depend on your target tenant.
If you target families, schools and parks may be most important. A younger crowd might want nightlife, cafes, and restaurants.
Vacation rentals can charge more if they are close to local beauty spots, hiking routes, or a tourist attraction.
In other words, you need to understand a bit about your renter before you can determine if your property sits in a highly desirable location.
3. The Local Economy Shapes Rental Valuation in Montana
Economic trends have a massive impact on real estate, including the rental market. When valuing a property in Kalispell, MT, you must examine local economic conditions.
That includes the unemployment rate, recruitment drives, and who moves in and out of the area.
A sizeable new investment by a major local employer, for example, could see an influx of new residents looking for a rental. That will help you increase your valuation.
Similarly, if economic factors are uncertain, like rising inflation or higher property taxes in Montana, people worry about their monthly outgoings. They may want to shop around for a cheaper rental to keep their costs low.
Rental Valuation in Kalispell, MT
A rental valuation isn't as simple as you might expect. Many factors, including your location, property condition, and the local market, shape it. Always do your research to help you achieve the highest asking price.
PMI Realty Management NW offers a free rental analysis. Try it for yourself to see how much your property is worth.