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With its excellent public schools, exceptional weather, and numerous outdoor activities, Huntington Beach, CA, earned an impressive livability grade of A from Niche.com. While the median rent here is considerably higher than the national median ($2,318 vs. $1,268), that hasn't stopped 44% of the city's population from renting.
So, as a new Huntington Beach landlord, you should take those stats and figures as good news.
However, to truly maximize your rental income potential, you must be able to distinguish rental valuation facts from myths. Otherwise, you could face significant losses if you overcharge or undercharge rent.
The property management team at Sail Properties, Inc. will help you separate facts from fiction in this guide, so please read on.
Myth 1: Rental Property Valuation Is a Luxury
No, it's not a luxury; it's a necessary rental pricing strategy because it's one of the primary ways to determine fair market rents and the rates of comparable properties. If you don't know what these are, your odds of charging too much or too little are high.
When you overcharge, you'll have difficulty finding renters willing to pay much more for your property. Even if they agree, chances are, they won't stay long and won't want to renew the lease. After all, why would they want to keep paying a premium if they can find a similar property in the rental market for much less?
Conversely, undercharging can attract the wrong crowd to your properties. Even if your tenants pay rent on time, you'll likely just break even if the rent you collect is too small. Worse, you may be unable to pay yourself after deducting your property expenses.
Myth 2: Rental Valuation Isn't Necessary Since Landlords Can Raise Rents Whenever
California has stringent rent control laws that limit rent increases for most residential tenants. For instance, the Tenant Protection Act prohibits landlords from implementing a rent increase of over 10% within 12 months.
As mentioned above, you risk setting your rates too low unless you conduct an accurate rental valuation. If this happens, you'd have to wait a year to raise them to a more reasonable amount, during which you could already suffer significant losses.
Myth 3: Rental Valuation Is Costly
No, it's not expensive. On the contrary, if you find the right partner, you can get a complimentary rental market analysis and property valuation!
For instance, Sail Properties, Inc. provides free rental analyses. All you have to do is call us at 714-868-8951 or give us your property's complete address. Our innovative software technology allows us to find comparable properties, and we'll use our findings to help you determine your property's potential pricing and profitability.
Ready for Your Complimentary Property Analysis?
Remember: Rental valuation is vital in establishing fair and reasonable rental rates and determining your property's long-term profit potential. So, it's more of a necessity than a luxury. Fortunately, you can get one for free from Sail Properties, Inc.
Sail Properties, Inc. is a full-service property management company serving landlords and property investment owners in Huntington Beach, CA. We have a long and rich history that started in 1982. We'll use our 40+ years of expertise to help you implement effective rental income optimization strategies and furnish your properties with quality tenants.
Contact us today, and we'll happily answer your questions and provide your free rental analysis and complimentary consultation!
