Perfect pricing is often the biggest hurdle a landlord will face. Not too high or too low, room for profit but plenty of demand.
And don't forget you also have to factor in a bustling and fast-changing market. After all, last year saw another price rise. Today, you'll pay around $1900 monthly for the average Atlanta rental property.
Before determining your rental valuation, knowing some common myths that trip up landlords when setting a price is worthwhile. Here are some debunked myths about rental price valuation in Atlanta.
Premium Rentals Attract the Best Tenants
A common misconception in the rental market is that premium properties attract the best tenants.
That leads many landlords to charge higher prices, assuming it will attract a better tenant. Yet, that's not the best way to discover the most reliable renters.
Charging more won't necessarily get you the tenant you want; one who pays on time and cares for the property.
It's best to do thorough background checks to achieve that. Get references, find out their credit history, and ask for evidence of income.
You Can't Have a Diverse Property Portfolio in Atlanta
Perhaps you believe the Atlanta rental market is a relatively uniform picture in terms of pricing. In this case, you might want to diversify your investments by looking outside the city.
However, that's not the truth. Atlanta has much diversity in neighborhoods and rental landscape. Together, it provides a picture of a place with distinct areas, demographics, and amenities.
Rental demand and pricing span a wide range. It means you can find an investment within your budget and vary your portfolio.
Pricing Low Will Secure a Tenant Fast
Earlier, we discussed some myths that cause landlords to price too high. The opposite also happens. Some property owners believe pricing below the market rate will secure a tenant quickly.
It's natural to want to rent a property quickly, as it means you start getting financial returns. But a low price isn't always the best option. An undervalued property could raise a red flag for a potential tenant.
They could assume that the price reflects a problem with the property. So a low price could leave you with an unoccupied home longer than expected.
Look at similar properties in the same Atlanta neighborhood and pick a fair price for yours.
An Online Valuation Tool Provides Everything You Need
When pricing a property, online valuation tools market themselves as a one-stop shop for landlords.
While these tools offer convenience in finding a rental value, they don't capture the uniqueness of properties in the same way as a rental analysis.
For example, if a property has a recent upgrade, the tool won't have that data quality when estimating. Local expertise and property knowledge are equally valuable when pricing a rental.
Rental Valuation: Navigating the Atlanta Market
When carrying out a rental valuation, avoid making too many assumptions.
Use this guide to help you steer clear of the myths that surround this market. When setting a price, use expert help and try to choose a fair, competitive, and profitable rate.
For more help getting a rental valuation together, contact our team. Our rental property management services could be the best solution for your needs.