Were you aware that over 35% of Floridian homes are lived in by renters instead of the owners?
If you have one or more properties, then you may have realized the financial goldmine you could be sitting on. Instead of working for your money, you can invest in rental property management and make your money work for you. Whether this is realistic or not depends on the types of properties you have.
Are you wondering if it’s worth it to rent your house? Keep reading to learn how to evaluate a rental property investment.
Compare Your Potential Rental Home to Others
The first step toward getting an idea of your rental property’s worth is by seeing what similar properties are renting for in your local area. The last thing you’d want to do is try and charge a potential tenant twice or three times the going rate.
Reliable property management companies can assess your home and compare it with similar homes that are available for rent within a reasonable radius.
Familiarize Yourself with the Surrounding Area
Yet another aspect that can affect what rent you can charge involves the location. If your home is in the middle of nowhere, then a residential property management company can’t charge as much as you would if the home was in a convenient spot.
Practical aspects to consider include the location of groceries stores, carwashes, banks, and more. Don’t forget about fun and entertainment as well. If there are no good restaurants or movie theaters nearby, then you may not be able to charge as much for rent as you’d like to.
One of the best rental property management companies in Florida can help you make the right call.
Assess Your Mortgage
In an ideal world, your mortgage will have been paid off. However, this isn’t always the case, so it’s important to figure these numbers into your profit calculations.
As local property management companies will attest, there’s no point in renting out your home if you can’t make anything beyond what you’re required to pay on the mortgage each month. If the debt-to-income ratio is anything less than half, you’re better off waiting until you’ve paid off more of the mortgage.
Are Ready to Rent Your House?
Now that you’ve learned how to evaluate a rental property investment, you can rent your house and any other properties you own. That way, you can sit back and watch as the money come in.
If you don’t want to be stressed and overwhelmed with renting out one or more properties, it’s essential to seek long-term property management. We can offer you comprehensive solutions at an affordable rate. From tenant background checks and rent collection to leasing and handling disputes, you can count on our expertise.
Please feel free to contact us with any questions you may have.
