How Do Neighborhood Home Values Influence Rental Prices?

Share:

How Do Neighborhood Home Values Influence Rental Prices?

Staff Writer · Feb 17, 2011

It is important to consider neighborhood home values before investing in a property with the intention of renting it out as there is a correlation between rental prices and home values of a neighborhood. The quality of the neighborhood where you buy your home is important as it will influence the type to renters you can get for your property and the rent they are willing to pay.

Influence of Neighborhood Home Values on Rental Prices

If you wish to invest in a house in order to earn rent from it, you should ensure that you buy the house in an area where the other houses are in good condition and the residents are decent. An old house in a bad neighborhood where nearby properties are badly maintained and the crime rate is high can be bought cheap but will be difficult to rent out.

Rental prices are influenced by:

  • the reputation of the neighborhood
  • the proximity of the neighborhood to transportation facilities
  • the condition of the houses in the vicinity
  • the crime rates in the area
  • the proximity of the neighborhood to facilities such as schools and shopping centers

In addition, the house should be close to an area where it is easy to find employment. You should also check the listings and vacancies of houses in the neighborhood as a high amount of listings can indicate that the neighborhood is not popular with renters. The house should also not be in an area that is prone to natural disasters such as earthquakes or flooding as your earnings would be corroded by the high insurance premiums on the property.

It’s best to buy a home in a residential area where people want to live if you really wish to rent it out.

You might also like:

On ApartmentRatings, real renters have the ability to rate and review their apartment communities based on their experience touring and or living in the communities. ApartmentRatings offers renters the ability to see what life is like at a community through a report card grade style format called epIQ. Every month we highlight apartment communities whose […]

Jessica Lee

 · Apr 3, 2024

|
image

Moving into a new apartment or rental property can be both exciting and stressful. From packing up your belongings to coordinating logistics, there’s a lot to manage. However, one aspect that is often overlooked is what to expect on move-in day regarding the condition of your new unit. Surprisingly, according to recent surveys, a significant […]

Jessica Lee

 · Mar 12, 2024

|
image

On ApartmentRatings, real renters have the ability to rate and review their apartment communities based on their experience touring and or living in the communities. ApartmentRatings offers renters the ability to see what life is like at a community through a report card grade style format called epIQ. Every month we highlight apartment communities whose […]

Jessica Lee

 · Feb 28, 2024

|
image