Texas is far from the most expensive place to rent in the US, with an average property rental price of $1,082.
If you own a rental property in Richardson, TX, then this average will give you a rough idea of how much you might charge. It's important to bear in mind, however, that there are many factors that will determine how much you should charge for rent. A professional rental valuation will give you the best figure to go with.
There are plenty of myths about rental property pricing, and it's important to understand how things work. Keep reading for a rundown of some of the biggest myths that you should be aware of.
I Can Set Whatever Rent I Want
This is a very common myth that many people believe when they purchase their first investment property. If you own it, you should be able to charge whatever you want, right? In theory, you can, but proceeding with this mentality will likely ensure you make no profits.
You have to consider other properties in the area in comparison to yours. If you overcharge and don't offer a fair rental value, no one will want to move into your property. You want to maximize profits, and that means charging a reasonable amount that will attract potential tenants.
I Can Raise Rent Whenever I Choose To
There are various forms of rent control across the US, and all landlords must follow these. Texas is one of the more relaxed states in regard to this.
You have the option to raise rent by as much as you want, but not during a fixed lease. You need to wait for the lease to finish, then you can raise the rent. Bear in mind that raising it is likely to push tenants away.
Landlords Know the Rental Value of Their Property Best
Many landlords naturally think this - especially experienced ones. With time, you'll get a better understanding of rental properties and how much you should charge for monthly rent. With that being said, there are a huge number of factors that can influence it, and few landlords understand them all.
The best way to get an accurate rental value of a property is to get a professional rental valuation. A property manager can analyze a property to determine exactly what it's worth and what a suitable rental price should be. This will help you establish the best rental price to maximize your rental income.
If the Tenant Can Afford More Rent, I Can Increase It
You might learn that your tenant makes a lot more money than you thought, but this isn't a good enough reason to raise the rent. There's a chance you may be able to compromise with your tenant to increase the rent. It's more likely, however, that they'll refuse to pay more, and will end up opting for a different home.
Suitable Rental Valuation
These myths are a problem for landlords. Something as simple as charging the wrong amount for rent or upsetting a tenant can have a sizable impact on the income a property generates.
To get the most out of your rental property, you should have a professional rental valuation performed. PMI Star of Texas can help you with this. Get in touch for a free rental analysis today.