You've found the one: the perfect rental property in Alpharetta, GA. You're now considering purchasing the property to start boosting your revenue. Smart thinking.
Research shows that Alpharetta's renter share was 32% in 2022-much larger than the share of renters in nearby communities in Atlanta's northern metro area. That's because the city's median house price is nearly double the nation's average, making renting more affordable for many residents.
Do you know how to determine the value of your properties in Alpharetta? You can hire a property management service to help you with rental valuation. Let's explore the importance of rental valuation for landlords in Alpharetta.
Staying Competitive
Accurate rental valuation in Alpharetta can help you establish a competitive rental rate. This will help you maximize your revenue while still drawing potential rental home tenants.
A reputable provider of property management services in Alpharetta can use several valuation methods to generate reliable rental valuations for you. These include the sales comparison, income, and capital asset pricing methods. Let's review them.
Sales Comparison
The sales comparison technique involves estimating properties' values by comparing them with those of similar homes that were recently sold locally. This approach considers the property's condition, age, features, and location.
Income
Alpharetta property managers who use the income approach will determine a property's value based on how much income it produces. They'll divide your collected rent amount by your capitalization rate. This rate is your expected financial return.
Capital Asset Pricing
This model can help you determine an investment's expected financial return by considering multiple factors like the anticipated market return. Another factor you'll consider is how volatile your investment is compared with the market. A third factor is the anticipated financial return if your investment has zero risk.
Evaluating Possible Rentals
Another reason to perform rental valuation in Alpharetta is it can help you determine whether a prospective rental property has strong investment potential. Use a valuation to assess a property's potential financial return before purchasing it.
Determining a Property's Value
Yet another reason to use a rental valuation service is they can help you identify a rental property's value before you sell it. A home's rental value usually makes up 6-10% of its total value. This can help you calculate your property's overall value.
Guiding Your Rental Strategy
Rental valuation through a full-service property management company can also help you make informed decisions regarding your real estate business strategy. This strategy may include how much to charge for rent at homes in various parts of the city. Regular appraisals can offer you actionable rental price insights so you can adjust your rent annually.
How We Can Help With Rental Valuation
Rental valuation offers numerous benefits, including helping you maintain competitive rental rates. A rental valuation can also help you evaluate possible rentals and determine a property's value before selling it. These appraisals may help guide landlords' rental strategies, too.
At PMI North Atlanta, we can help you with rental valuation in Alpharetta, GA. We offer free personalized rental analyses of landlords' properties and neighborhoods.
Your analysis can help your rental home's value based on its amenities, condition, and location. Fill out our website's rental valuation form to request your free rental analysis today!
