Since 1990, North Idaho has more than doubled. Many newcomers from California and Washington settle in Coeur d'Alene, the biggest city in the region.
Coeur d'Alene, Idaho, has become a popular destination for raising a family or retiring. Because of the population boom, many investors are buying rental properties in the area.
Before you hop on this trend, it's important to understand the correlation between rental valuation and location.
Rental Valuation and Location: The Impact
A property's location is one of the most critical real estate factors. Location determines property value, future growth potential, and demand. Properties located in desirable areas are those with low crime rates near amenities.
Places located near amenities will have a higher property value than those near fewer amenities. Here is an overview of how location and each amenity affect rental valuation:
Low Crime Rates
Properties in Coeur d'Alene, Idaho, located in safe and secure areas are more valuable than those in areas with higher crime rates. Renters are willing to pay more for properties in low crime-rated areas.
An investment property owner can value their rental higher and ask for more rent. It's important to complete a rental valuation that compares similar properties in the area so you don't overvalue your rental.
Proximity to Amenities
People don't want to travel far to go to work, enjoy shopping, or take their kids to school. The closer a property is to amenities, the more attractive it will be to renters. Additionally, properties close to public transport access are going to be more valuable.
A property management company can help you market these amenities to attract quality tenants to your rentals.
Natural Disasters
If a property is located in an area prone to natural disasters, the property value will decrease, making rent prices lower.
In Idaho, wildfires and flooding are the two most common natural hazards. However, the state has experienced damage from a volcanic eruption, tornadoes, and earthquakes.
Luckily, Coeur d'Alene, Idaho, is an area with less risk than the state average for natural disasters. If you are considering a real estate investment in Idaho, Coeur d'Alene might be a great option.
When to Complete a Rental Valuation
If you are an accidental landlord or out-of-town landlord, you might not realize the benefits of a rental valuation.
It's important to complete a rental valuation regularly because the real estate market is fluid. The same property can change within a short period, and it's best to know when it does.
Currently, interest rates are high so many people are seeking rentals. Because more people are renting, rent prices are higher. The Reserve Bank and other factors can influence the rental market.
How Can a Property Management Company Help?
Location is a huge factor in rental valuation, but it isn't the only one. If you fail to understand the market, you might not have as much real estate success as you'd hope.
A professional property management company in Coeur d'Alene, Idaho, can help. At PMI Coeur d'Alene, we have over 20 years in the industry. Although we have gained traction worldwide, our local service offerings are what sets us apart.
We know the market and local area better than anyone and are ready to share that knowledge with you. Contact us today to get started.
