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According to Eviction Lab, there are nearly 200,000 renter households in Milwaukee, making it a great place for property investors in 2024.
If you're looking to purchase a Milwaukee rental property, there's plenty to think about beforehand. Obviously, the biggest factor in determining your ROI on a given property is rental pricing. To figure that out, you need to perform a thorough rental valuation that helps you analyze the market in comparison with your financial needs.
In today's post, we're going to help you with your property valuation by telling you a few of the biggest myths around rental property pricing. Keep reading and increase your property earnings using increased knowledge.
Your Rental Valuation Is Merely a Suggestion
Performing a property valuation is an integral part of the rental property investment process. Some landlords see their valuation and decide that it's just a suggestion and do whatever they want anyway. This is a terrible approach.
Rental valuations are not merely suggestions. They account for every feasible factor that might contribute to a rental's market value and give you a very accurate number. It's not to say that you should always take a rental valuation as gospel, but it's quality research that must be considered when pricing your rental units.
You Can Raise Rent at Will
Too often, landlords will look to the state laws to determine how much they can raise their rent each year. Unlike some other states that put a cap on the amount a landlord can raise their rent each year, Wisconsin has no such cap.
Landlords can technically raise their rent as much as they want, but taking advantage of this is never a good idea. Arbitrarily raising rent an exorbitant amount is only going to alienate your tenants and cause them to leave.
When they do, you'll be left with a rental vacancy and you'll be forced to lower rates to a more reasonable level anyway. Always keep your rent at a fair market value and you'll maximize rental income.
Lower Rent Attracts Renters
Some landlords fear rental vacancies too much and lower their rental rates to attract renters. This isn't a great option either, as it will attract the wrong types of tenants and you'll struggle to find long-term rental solutions.
Offering low rental prices will also make it a struggle to cover your expenses each month. We perform rental valuations to have a strong idea of what the market value of a rental property is. You should always stick to this accurate rental estimation to increase property earnings.
Get Help with Your Rental Valuation
If you can avoid these myths around rental pricing, you can avoid vacancies and maximize your rental income. It's important to trust in your rental valuation because it uses all of the most up-to-date techniques for assessing a rental's potential.
Do you need help getting an accurate rental assessment in Milwaukee? Performance Asset Management is Milwaukee's top property management company. We can help you determine the most sensible rental rates to attract great tenants and boost your income.
Contact us today to learn more about our services.
