Are you looking to invest in a rental property in Greenville, South Carolina? It's a smart decision as the city has seen an increase in population since 2022, and this is expected to rise further.
But before you start seeking tenants, there's one question we've got to ask you: how much do you know about rental valuation?
There are many myths surrounding rental valuation, which confuse many first-time landlords. It's important to understand how your rental pricing works before you prepare a lease agreement.
Here's what you must know:
Rental Valuation Is a Suggestion
You don't have to charge a rental fee that matches your rental valuation. You can always charge a lower or higher price than the valuation amount.
However, you can't go overboard by charging a high price. You can deter potential tenants if you overcharge for rent.
There are also laws in some jurisdictions that set limits on how much a landlord can charge for a rental fee. As of February 2024, South Carolina doesn't implement rental control laws and currently prohibits their implementation.
Can I Raise the Rent?
What happens if you feel you need to raise rent? You can request a higher price after your lease agreement ends. However, you cannot raise rent during the lease period.
With rising inflation, many landlords feel a need to charge higher rent prices. You must also remember that tenants will also struggle with inflation. They can't always accommodate higher prices, and you may lose them.
You can charge late fees in case your tenant doesn't pay on time. South Carolina doesn't currently have laws regarding the grace period or how much you charge for late fees.
I Can Charge as I Wish
You can charge as you wish, but this isn't always the wisest decision. In many cases, you aren't the best person to value your rental property.
To understand rental valuation, you'll need to understand Greenville's rental market. You'll have to study which neighborhoods are most in demand. You'll also have to compare your property with other similar properties.
The type of tenants also matters. A property aimed at families can bring in higher rental prices compared to one targeted toward singles. Take your time to study the rental market before you decide how much to charge.
If you offer extra services and amenities to your tenants, you can often charge more. But it's always best to speak to a real estate agent first to get a rental valuation.
Welcome to Greenville
Now that you understand how rental valuation works, you can open your property to Greenville residents!
Rental valuation is a suggestion, so you can always charge a different price. You should study the rental market before you decide how much to charge.
You can't raise rent until after the lease agreement ends. Be careful when raising rent, as this may deter great tenants.
Of course, you'll need a property manager to help you find these tenants. The next step is to hire PMI Upstate SC, the best property manager in Greenville!
