When you do some research, it is easy to understand how and why location has such an impact on rental value. Typically, properties located in areas where people can commute to work easily, are near shops and leisure facilities, and are in close proximity to the best schools in the area. Because of these factors, the per-square-meter rental value of properties located in these prime locations is higher than those located in a rundown or rural area of a town or city. National Property Management Group Kansas City cares about homeowners, so we have provided the rundown on how property location affects rental value.
Factors that Increase Rental Value
Most people do not mind paying higher rental fees for a property that is located near a school, shop, hospital, etc. These types of locations can affect the rental value of properties dramatically. For example, properties located in an area that has or is close to a school will have 10 to 35 percent higher rental value than similar properties located in areas that are not close to a school. Generally, a property that is located in an area that offers modern urban and civic facilities will also be costlier to rent. Just as the location of a property can increase rental value, it can also decrease the rental value.
Factors That Reduce a Property’s Rental Value:
Located next to or near a railway line or station
Located near a substation
Close to an industrial estate
If it is next door to a rundown property
If it is located in a neighborhood with noisy pubs or commercial properties
Located in an area that has an undesirable smell
These guidelines often provide a pretty accurate reflection of rental values, but there are always some exceptions. Take schools for example. Although the proximity of a school typically increases a property’s rental value, the noises and traffic that these facilities produce can sometimes decrease a property’s rental value.
Before you purchase a property, it is a good idea to do some research about how the surrounding location may impact your property’s rental value. There is no such thing as a perfect property, but doing some research can help you find a property with the best rental value. At National Property Management Group Kansas City, we aim to provide home owners with all the information they need to make a good decision. For more information about our properties, call (913) 766-2302 today.