If you make an investment decision and think it doesn't work out as planned, your first thought is probably this: Did I make the wrong assumption?
It's the same when marketing a rental property. There are many rumors and myths about how to succeed and fail in real estate investment. However, property investment decisions based on false information can be costly.
To help you avoid this, we'll share below some of the central myths you might have read about a rental valuation in Hudson Valley, New York.
Myth: You Can Charge Higher Prices in the Summer
Picturesque Hudson Valley is popular with tourists, and you'll find the region busiest during the summer months. With all these crowds, you'd be forgiven for assuming that property demand will be higher, meaning a rise in rental rates.
However, while pockets of Hudson Valley will see price spikes, this is not a pattern that applies to the entire region, especially if you have a long-term rental.
The key takeaway is not to worry about the time of year you market your property. Set the rate according to the current regional demand, not the season.
Myth: A Cheap Rent Pricing Strategy Will Mark You as a Low-Quality Property
You might worry about lowering your rental rate if you can't secure a tenant. There is a commonly held belief that low prices change the perception of your property, and tenants will assume it's poor quality or has something wrong with it.
However, this isn't true because pricing is diverse across Hudson Valley and will reflect many factors, like the neighborhood or supply trends.
The truth is that a competitive rate will be an attractive proposition and won't put off tenants, provided you don't market your property at a significantly lower rate than competitors.
Myth: Hudson Valley New York Rental Market is a Premium Rental Location
Hudson Valley has always attracted high-worth individuals, which some landlords assume translates to premium rental rates across the region.
However, Hudson Valley is the same as other in-demand areas; some spots are more sought after than others, and these places command the highest rental rates.
The highest rates are found when there is proximity to beautiful scenery, attractions, and excellent transport options into New York.
Myth: Property Income Is All About Your Property Size
If you scan a vast list of Hudson Valley rental properties, you'll probably find some correlation between the square footage on offer and the rental rate. But it's not always so clear-cut.
Property amenities and interior finishes matter, too. Ones with high-end modern finishes will command more.
Proximity to local amenities also matters. Properties in the most sought-after streets near the best parks, schools, shops, and restaurants are likely to be able to ask for a higher rate.
Determining Your Rental Valuation in Hudson Valley, New York
Now is the time to make the right investment decision. A poor rental valuation could leave you with an empty or underpriced property, hurting your profit margins.
Having an expert team on hand who knows the ins and outs of real estate in Hudson Valley can help you avoid costly mistakes.
PMI Husdon has an experienced team with local knowledge and a focus on finance, helping you maximize your investment. Discover more about our valuation services here.
