The rental vacancy rate for Tennessee, in the first quarter of 2022, was 6%. This is lower than the 7.1% average across the South. As with the United States as a whole, the rental vacancy rate in the Volunteer State has been steadily declining, down from more than 10% in 2010.
If you are determining the rental valuation of your property in Tennessee, there are a number of factors to consider. In this blog post, we will highlight some of these, including the property's location, the number of bedrooms, curb appeal, and more. Let's get started.
Location
As the saying goes, "Location, location, location." This is typically the most important factor when it comes to real estate and rental prices. The specific location of a property will establish a baseline rental rate and allow you to understand your target market and the overall demand.
Popular areas, such as those that are located near the city center or close to good schools or colleges tend to attract higher rents due to the increased demand.
Number of Bedrooms
Generally speaking, the more bedrooms that a property has, the higher the rental valuation will be. A one-bedroom property will typically rent for less than a two-bedroom property, which will be less expensive than a three-bedroom property, and so on.
It's not only the number of bedrooms that plays a role in the rent price. Having an extra bathroom, for example, or more square footage than a property with a similar number of bedrooms can also increase the overall home value.
Pets
Landlords that allow pets in their properties are typically able to command a higher rent price. In general, there are many benefits to allowing pets in your rental property. These include more interest from the public, the ability to charge higher rent, and the fact that pet owners are typically responsible renters.
Pet owners are also more likely to renew their lease, given how difficult it can be to find a rental property that is pet friendly.
Curb Appeal
A property that is in good overall condition, both inside and out, and has a strong curb appeal, is more likely to be sought after by renters. This reduces the time it will spend on the market and maximize the rental price that can be charged.
If your rental property is not in the best condition or aesthetically pleasing, it may be worth investing in a renovation so that the rental valuation will be higher in the long term.
Factors That Affect Tennessee Rental Valuations
The bottom line is that rental rates are determined by the expectations of the consumer. To learn more about your rental valuation, we recommend that you speak to a property management company.
If you are interested in partnering with an experienced property management company in Tennessee, your premier choice is HomeRiver Group. Contact us today to learn more.
