How much can you make on your rental property?

Owning a rental property in Wilmington, NC, can be a smart way to generate extra income. But how much can you actually make? Whether you’re a seasoned property owner or considering renting out your home for the first time, understanding the potential earnings is crucial.

Understanding Rental Income

The income from a rental property typically comes from monthly rent payments. In Wilmington, rent prices can vary based on location, property size, and condition. To get a rough estimate, research similar properties in your area. This gives you a baseline of what you might expect to charge. However, keep in mind that rental income isn’t just about covering your mortgage; it’s also about generating profit after expenses like maintenance, property management fees, and taxes.

If you are looking to buy a rental property, we highly recommend getting a rental analysis before putting an offer in. You want to ensure you can set a competitive rental rate that covers your costs and turns a profit. Our team is happy to work with you and your realtor to make sure you pick the best property for your goals.

Is It Worth It?

So, how do you know if renting out your property is worth it? One key factor is your property’s potential return on investment (ROI). ROI can help you determine if the rental income will sufficiently cover your expenses and provide a profit. A good ROI typically ranges from 5% to 10%, but this can vary based on your financial goals. 

When purchasing a property, you should also consider the appreciation of the property annually and the potential tax benefits of a rental property. 

Maximizing Your Rental Income

To maximize your earnings, consider factors like property upgrades, strategic pricing, and professional property management. By keeping your property in top shape and setting a competitive rental price, you can attract quality tenants willing to pay a premium.

Owning a rental property is an exciting venture that can bring in steady income if managed well. 

Want to see what your property could earn? Try our free rental analysis.