Last year, rental prices rose by an average of 7.45% across the USA, while Nevada was one of only five states where rental prices dropped.
Macroeconomic factors like supply and demand significantly affect what you can feasibly charge in rent, but there are also personal factors each landlord should consider.
Rental valuation is the process of finding out how much a property's worth and what the realistic monthly rent should be. Learn more about Las Vegas rental valuations in this informative blog.
1. Anyone Can Initiate
Las Vegas has one of the smallest renter populations in the entire region; only 46.3% of residences have renting occupants. With such a small population, supply and demand put landlords in a position where they are competing for renters. This is partially why renting real estate in Las Vegas is relatively low.
Landlords and property management companies aren't the only parties who can initiate rental valuations. Tenants can also get a property management company to evaluate their residence to estimate how much rent could or should be.
Tenants who discover they're underpaying will likely keep that information to themselves. If, however, they find that the rent is higher than the market average, they can either start looking for somewhere cheaper or renegotiate the lease from a better bargaining position.
2. Valuations Consider Many Factors
Rental valuation in Las Vegas mainly follows the Sales Comparison Approach (SCA). This approach to rental valuations starts by looking at the property's square footage and its features (number of bedrooms, bathrooms, etc.). The evaluator then considers the average price of similar properties in the area.
The SCA method also considers the place's condition, location, age, and access to amenities. The final result is an estimate that's as accurate as possible.
3. Valuations Aren't Binding
One important thing to clarify is that a rental valuation is simply a tool for determining a place's fair market value based on averages.
The valuation will give you a "fair price," but that won't automatically renegotiate the lease with the landlord or property management company. For instance, tenants who learn they're overpaying still need to decide what to do as a subsequent, separate step.
There's also a lot of flexibility for property owners and investors who learn the average price their unit could be rented out or sold for. They could adjust the rent lower to attract tenants or set it higher as a form of quality assurance. Once the results from the rental valuation are in, it's best to consult a professional property manager about the best strategy for the future.
Get Professional Rental Valuation
Rental valuation is a great tool when setting up your renting policy and pricing. It's also useful for tenants wanting to learn more about their options and bargaining position.
Anyone can initiate the valuation process by getting in contact with an agent and having them come to appraise the property. The agent will likely use the Sales Comparison Approach and some of their own market research to determine an accurate price.
This service can help property owners and tenants alike. If you're looking for more services that are useful to everyone, contact us today.