One of the golden rules of life is to never make assumptions. We have been guilty of perpetuating myths in our mindset that are far from the truth.
St. Louis, with its diverse neighborhoods, rich history, and thriving cultural scene, presents a unique rental market. However, many myths about rental valuation can cloud the judgment of both landlords and tenants. Dispelling these misconceptions is crucial for making informed decisions.
Here are some common myths about rental property pricing in St. Louis, especially for first-time landlords interested in higher property income.
1. Myth: Higher Prices Always Mean Better Quality
One prevalent myth is that a higher rental price guarantees a superior property. While there is often a correlation between cost and quality, this is not a hard and fast rule. Factors such as location, property age, and amenities can influence rental prices significantly.
For example, a modest but well-maintained apartment in a trendy area like the Central West End may cost more than a newer, larger unit in a less sought-after neighborhood. Tenants should evaluate properties based on their specific needs and not just the price tag.
2. Myth: Lower Prices Indicate Poor Condition
Conversely, some believe that lower rental prices mean the property is in poor condition or located in a bad neighborhood. While it's true that rent is often lower in less desirable areas, this is not universally applicable.
Some landlords may price their properties competitively to attract tenants quickly, especially in a saturated market. Renters need to inspect the property and neighborhood personally rather than making assumptions based solely on the rental price.
3. Myth: Rent Prices Are Non-Negotiable
Many tenants think that the listed rent price is set in stone. In reality, there can often be room for negotiation, especially if the property has been on the market for a while.
Landlords may be willing to lower the rent slightly to secure a reliable tenant, particularly in a competitive market like St. Louis. Tenants should feel empowered to discuss potential rent adjustments, especially if they have strong references or are willing to sign a longer lease.
4. Myth: All Utilities Are Included in Higher Rents
Another common misconception is that higher rent automatically includes all utilities. While some higher-priced rentals may offer inclusive utility packages, this is not always the case.
Tenants need to clarify what utilities are covered in the rent. Understanding whether services like electricity, water, gas, and internet are included can help tenants make a more accurate comparison of rental prices.
5. Myth: Rent Control Exists in St. Louis
Some renters might mistakenly believe that rent control measures exist in St. Louis, capping how much landlords can increase rent annually. Unlike cities such as New York or San Francisco, St. Louis does not have rent control laws. This means landlords can adjust rent prices based on market conditions, property improvements, and other factors.
Rental Valuation - Do a Proper Rental Market Analysis
Accurate rent pricing can make all the difference in the lives of tenants and landlords. It is a win-win situation for everyone involved.
That's why when conducting a rental valuation for your property, take your time and avoid errors.
Need some help with this? PMI Stl Metro in St. Louis, MO, is more than happy to offer its 20 years of full-service property management services.
Contact our team to learn more.
