Vienna, VA, is one of the top places to live in the state, thanks to its public school systems, family-friendly activities, and safety standards. The city's distance to Washington D.C. makes it a popular residential area for many people to live in so they can easily commute. If you're a property investor, having a rental property in Vienna is a great way to earn rental income.
Setting the right rental price is crucial for attracting quality tenants and ensuring profitability. This article will cover our top three tips for getting the correct rental valuation in Vienna. Make sure you're maximizing the potential of your investment by getting an accurate property assessment.
1. Evaluate Your Property Using the Sales Comparison Method
The sales comparison approach is the most used tactic for single-family properties. Property owners can calculate their unit's value based on recently sold comparable properties.
You'll need to assess at least three different comparable properties to correctly assess your property's value. Some of the factors that will be included in your calculation are:
- The presence or absence of a garage
- Number of bathrooms and bedrooms
- Square footage
You'll then adjust the value by subtracting or adding value. Once you've finished this analysis, you can figure out the price per square footage that you can apply to your property.
2. Calculate Rental Value with the Income Approach
Another term for this method is the income capitalization approach. The most popular method is to determine the value of one of the following types of properties:
- Strip malls
- Office buildings
- Apartment complexes
This approach calculates the property's value based on potential income versus its purchase price.
You'll need to look at how much you make each year from your rentals. Then, divide that amount by the price you paid for the property. You'll be left with the percentage of your original property price that you'll make annually.
3. Try the Capital Asset Pricing Model
The capital asset pricing method is typically used for assessing a commercial real estate portfolio. It helps property investors determine their return on investment (ROI) by looking at how much their rental investment properties would net in comparison to other types of investments. Some types of low-risk investments include:
- Savings accounts
- Corporate bonds
- Mutual funds
Once they determine what their return on investment is for potential properties, property investors can decide if a rental unit is worth their potential losses.
Partner With a Professional for Rental Valuation in Vienna
It can be challenging to conduct a rental market analysis if you don't have any experience. A professional property management company has the tools and expertise needed to provide you with an accurate rental valuation for your property. They can give you property valuation tips that can boost rental value, ensuring you get the most money possible.
The experts at PMI Smart Choice are here to help you enhance your property worth. We provide free rental property analysis to our customers in the Arlington area. Contact us today to get started on the process.
