If you have or are about to invest in real estate in Long Island, NY, here's some fabulous news. A 2024 U.S. News & World Report ranking has named all four Long Island Counties, including Nassau, Queens, Suffolk, and Kings, some of the nation's safest counties.
With such rankings, Long Island will likely attract more residents, including renters. So, by renting your property out, you can generate good income.
However, you must first learn the truth about rental valuation and pricing. Many rumors surround this process, and believing them can lead to higher vacancy and tenant turnover rates.
Our team at PMI Lighthouse is here to dispel these myths, so read on.
Comprehensive Rental Valuation Isn't Necessary
Some landlords think that rental valuation isn't a necessity and that they can simply base their rental prices on those of their neighboring landlords. Stop believing this, as property valuation is necessary to determine reasonable rates based on a property's specific characteristics. Even if your neighbor charges tenants $3,000, that doesn't mean you can do the same, especially not if your neighbor's rental isn't comparable to yours.
Rental Pricing Should Reflect Original Rental Property Worth
No, not always, especially if the Long Island property you bought was in an up-and-coming neighborhood. In this case, the area's continuous improvements increase its attractiveness and demand for housing. What your property was worth before would have also increased, as should its current rental rate.
Conversely, a rental's worth could go down due to a lack of regular property maintenance. You may have been able to rent it out for $2,000 before when it was still in top condition. But if it has become outdated and ill-maintained, its previous property value or worth is no longer applicable.
Landlords Can Set Prices at Their Discretion
Many parts of New York State, including Long Island, have laws on rent control, increases, and overcharges. So, no, landlords can't just set prices at their discretion. They may even have to file for rent increases with the Division of Housing and Community Renewal (DHCR).
Besides, even in places not rent-controlled or rent-stabilized, overcharging won't do landlords any good, as it will only make finding tenants difficult. After all, who'd want to pay more if they can find something similar for a much more reasonable price?
All Long Island Rentals Warrant High Prices
According to Salary.com, housing costs in Long Island, NY, are over 50% higher than the U.S. average. However, that doesn't mean all rental properties here can automatically charge more. Again, a perfect example is an ill-maintained property; if it costs nearly the same as one in better condition, it likely will stay vacant for a long time.
Price Your Rental Right
If you don't perform a comprehensive, accurate rental valuation, you risk overpricing or underpricing your Long Island property. Either way, you'll lose income, so always conduct this process before renting your property.
Luckily, PMI Lighthouse has your back with our free rental analysis. Then, if you think we're a good fit, enlist our full suite of property management solutions. With our skills, experience, and state-of-the-art technology, we can provide high-quality marketing, rental market analysis, tenant placement, rent collection, accounting, property maintenance, and eviction services.
Reach out to us today so we can give you your free rental valuation!
