Average rent prices vary significantly across the US, and while Indiana is quite an affordable state, Indianapolis itself is one of the pricier areas in the state. The fair market rent for a two-bedroom apartment here is $1,065 per month.
Real estate investing is great if you want to generate reliable, recurring income, but it's not always easy. You need to establish suitable rental property pricing if you want to make solid profits. A professional rental valuation is the best way to do this.
There are several myths regarding rental prices, so you want to understand these to get the most out of your properties. Keep reading to find out more about these rental property pricing myths in Indianapolis.
You Know the Rental Value of Your Property Best
This is a common mistake that landlords make all too often. Even if you have a lot of experience in real estate investing, there's still plenty you probably don't understand.
It takes a lot of knowledge and experience to value a property correctly. A professional property manager can do this by looking at factors such as the size and condition of a property, nearby amenities, and the Indianapolis rental market as a whole. Determining the right rental value of your property will make it easier for you to maximize your profits.
You Can Set Whatever Rent You Want
Technically, this isn't a myth. If you own a property, you can ask for any rental price you want. Bear in mind, however, that this could make you no money.
Your rental pricing strategy should be based on the idea of finding the optimal rental price. A property manager can determine this, and it will be based on various factors.
If you set your rent too high, people simply won't want to rent your property. There are always alternative options, so you need to stay competitive.
Rent Price Should Not Be Set in Stone
You should think of rental property investing like a business, and with any business, there can be unexpected challenges. You need to be flexible so you can adapt to the market. When looking for renters, you might make a rent increase or decrease to make things easier.
After a lease is signed, however, the rental price can't change. It will be set until the lease expires, so make sure you're happy with the price you've settled on.
You Can Raise Rent at Any Time
Rules on raising rent vary by state. In Indiana, a landlord can raise the rent, but they must give tenants at least 30 days notice. You can also raise the rent by any amount you choose, but this is something that's usually only done when a lease expires.
It's important to note that tenants aren't likely to be happy when their rent goes up - especially if it's by a large amount. This may result in tenants moving out of your property, so it's not something you should do without proper consideration.
Professional Rental Valuation for Your Property
Understanding these myths will help you set a fair rental price for your property. Along with a professional rental valuation, you should be able to maximize your profits with ease.
Learn more from the team at PMI Midwest for your free rental analysis today.