Property value is something that is known to swing to high as well as dangerously low rates based on how the real estate market is performing. There are however, a lot of things that do not change in the way they affect rental rates. Here are five- three positive and two not so positive things that can affect your property value in terms of rent.
Any list that speaks about property value cannot be complete without mentioning location. A house that is located right will fetch more rent than one that is near, say, a large industry or a sewerage treatment plant.
Homes that are within walking distance of markets, schools and other everyday conveniences fetch higher prices.
Proximity to airports, train and bus terminals, malls, movies, hospitals and other big city amenities normally fetch high rents.
Condition of the building
The maintenance, lawn, backyard and the general condition of the structure is a very important part of property value. If there are all of the above three but the house looks like it fall apart in a strong sneeze, the rent will drop.
Smaller homes reap greater returns
This may seem a bit off at the outset but consider this: if there are two houses on the same size land, one built up taking all of the land, the other one only built to half the size of the first one. If there is a spike in rental value, the price that the smaller one will grow by double in comparison to the larger one. That is a more profitable return on investment.
There are a lot more things that go into property value and how much rent you can expect to get. Things like noisy neighbors, hoarders in the locality, threat of sinkholes, bright hoardings nearby and empty or decrepit buildings along the street are known to affect rental rates.