Younger generations joke about rent being high, but they are kidding. The median rent price in Georgia sits at $1,221. For millions of Americans, it amounts to half their salary.
As such, rent is a touchy, controversial subject -- making it prone to all sorts of misinformation. Landlords aren't immune, and may well fall for myths about their own rental valuation. It begs the question: what sort of myths might you be falling for?
Today, we're looking at rental pricing myths in Smyrna, GA, to uncover the property pricing truth.
1. Rental Valuation Can Go as High as You Like
One of the biggest mistakes first-time landlords make is assuming they can set it as high as they please. Sure, nothing stops you from doing this, legally. But it's not something we recommend.
A property priced above the average median rent in the area won't get many eyeballs. Sitting empty for months results in lost profit, so set a reasonable price. Keep in mind the cost of living, average salary, and other local demographics in Smyrna, GA.
2. Landlords Can Change Rent on a Whim
One myth that persists among rental market misconceptions is that you can change the rent whenever you like. When maintenance costs $6,000 a year, why not? The thing is, rent is set by the contract and won't change until the lease period ends.
The only exception is if the contract allows for a rent increase after a certain period. This is exceptionally rare, though. Tenants probably wouldn't sign a contract with that proviso.
3. Rent Rises With Inflation
Seems like a pretty straightforward concept: inflation increases, and so does rent. Well... not necessarily. Just as wages may not increase with inflation, your rent won't naturally skyrocket following a bad harvest.
For starters, there are limitations on how much you can increase rent for renewing tenants. Even within legal limits, you'll struggle to get tenants to renew with a steep increase.
Pay attention to the market and judge your increase on the competition. Over-inflated prices will be anathema to buyers set back by financial woes.
4. Trusting Your Gut Is Best
Sadly, you can't just set the rent based on a feeling. The real estate market is a complex organism with pricing based on an endless slew of variables; things like housing availability, renting habits, economic downturns, and so much more.
Get rental property facts from a property management company. They'll be able to provide you with unique property pricing insights to better inform your decision.
Manage Your Smyrna Property With PMI
Rental valuation is difficult to do, which naturally leads to a lot of misunderstandings about its workings. You can't set it as high as you want, nor can you change it at random. Change rent based on informed market analysis and not just a year of high inflation.
PMI Terminus in Smyrna, GA has all the rental property facts you need to set reasonable rent. Our decades of real estate experience make us uniquely suited to maximize that rental side income. Get an idea of what your rent should be with our free rental analysis.
