Around 80% of new builds in the western U.S. have sprung up in Homeowner's Association neighborhoods. With so many new HOA participants, finding portfolio investments that are not part of such a community will become more challenging. If you are considering renting out a property within an HOA, how does this status impact the rent valuation of the residence?
This article offers several insights into rental valuation in a HOA environment within South Jordan, Utah. Read on to learn several benefits that can improve your rental income strategies in such a situation.
Primary Factors Influencing Rental Valuation in HOAs
Many of the aspects of an HOA that impact rental valuation are the same as any other location, including:
- Market demand
- Local demographics
- Employment rates
- Local industries
- Property condition
- Improved utilities
- Crime rates
- Local neighborhoods and amenities
With many tech startups established in South Jordan in recent years, the demand for surrounding properties has suddenly grown. This trend has caused immediate growth in the value of properties and the rent you can charge for them.
On the other hand, you should remain aware that HOAs may impact the rental percentage you can charge on a property. They may also limit the types of tenants you can bring in within legal boundaries. For example, many HOAs ban short-term rentals, preventing renting using services such as AirBnB.
In recent years, HOAs have also had some negative publicity. As such, many renters may be critical of moving into something a location, reducing the rental valuation of an HOA property.
The best thing for you to do is often to consult with an HOA before buying a location for your portfolio. You can then get confirmation of any limits they will place on you.
Benefits of Renting in a South Jordan HOA
When you rent out a location, you can often advertise many of the benefits an HOA offers as a positive for the location. While every HOA is different, many of them may offer:
- Local security measures
- Close-knit communities
- Organized local events
- Local satisfaction survey results
- Tenant retention rates
- Well-maintained common areas
- Snow removal
- Easily-accessed maintenance services
- Strong local building aesthetics
Many of these are often a matter of public record due to HOA meetings. You can thus check whether a location makes an active effort in maintenance and repairs, among other objectives.
Together, all of these benefits can cause a long-term property value increase.
Valuation Services Offered by HOA Property Management Companies
Working with an HOA management company, you can better understand the valuation of many properties in an HOA. As it is in their interest to do so, they will have access to data related to:
- HOA market analysis on rentals
- Property valuation reports
- Local lease agreements
- Historical marketing and listing data
- Information on ongoing tenant-landlord relationships
Together, all this data can give you a clear understanding of an HOA's current rental valuation situation. You can then work with the HOA to ensure you and them both get the best results from renting in an area.
Maximize Your Rental Potential Today
Achieving a great rental valuation in a South Jordan HOA demands precise data and professional insight. HOA management services can provide both of these to boost your long-term rental income.
PMI Salt Lake can help you learn more South Jordan rental tips and the possibility of acquiring high-value assets for your portfolio. So, contact us today to unlock the full potential of every asset you hold.
