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According to the Visual Capitalist, New York City has the highest rent in the United States. Number five is Miami and number ten is Los Angeles.
"But what," you may ask, "makes rent in these places so much more expensive than in others?" Rental valuation differs from area to area, often due to location and the property itself.
"OK, but what specifically about location and the property determines rental valuation?" you wonder. Keep reading, and we'll discuss three factors to help determine an accurate rent estimation for your Santa Fe property.
1. Location
Let's use New York as an example of how location determines rental valuation. People often move there because of job opportunities.
Britannica sites New York City is the largest city in the country as of 2024, so it makes sense there are various places to work. It's also an enormous cultural hub and has plenty of entertainment.
Here's a general list of what people expect near their rentals:
- Entertainment (Museums, cultural attractions, bars, and clubs)
- Transportation (busses, trains, taxis; various forms of public transit)
- Schools
- Shopping centers (grocery stores, clothing outlets, etc.)
- Healthcare facilities
- Restaurants
- Parks
- Low crime rates
- Community engagement
We'll sum it up like this: the more perks you've got near your investment property, the more your rental property is worth.
2. Size and Layout
Yes -- you can theoretically increase the property valuation for a large space. However, arrangement and utilization can add or subtract from the value. Renters are seeking convenient and well-thought-out layouts.
Don't expect to charge exorbitant rent for a building where tenants must enter through the bathroom. Open-plan spaces, like combined living rooms, kitchens, and dining areas are popular.
Potential office spaces and laundry rooms are additions renters may appreciate. Communal spaces and storage are also big sellers. Areas with plenty of natural light may attract renters too.
3. The Property's Condition
A real estate appraisal depends heavily on the property's condition. Neglect can keep you from getting an accurate rent valuation because it's hard to see the potential underneath required repairs or neglect.
It's common for investors to factor in the inconvenience of having to deal with any repairs, leading to lower valuations. Consistent maintenance makes it easier to gain a rental income assessment.
Your investment property can be judged solely on its amenities, space, size, and neighborhood surroundings. This will make it easier to guess what to charge for rent and attract tenants.
Helpful Factors to Get Your Rental Valuation
Santa Fe is a vacation hot spot -- people enjoy relaxing and frolicking in the sun. But it takes more than a great location and a huge fancy house to get the most out of a rental valuation.
PMI Santa Fe supports commercial properties, residential clients, and HOAs. We can help keep your property clean and well-maintained to ensure you get the most out of your rental.
Our team will also coordinate bookings and manage check-ins and check-outs. We'll respond to renter inquiries too. Contact us so we can find out what your rental property is worth.
