There are a number of things that you need to take in consideration while you are trying to determine how much rent you want to charge to the tenants. The first thing that you need to do before deciding the rent amount to charge for your property is to determine the current market value of your property. This value would definitely be different from the price you originally paid for your flat.
The amount of rent you charge your tenants should be a percentage of your flats’ market value. The rent that is usually charged by the landlord is 0.8% to 1.1% of the flat’s current market worth.
Other than your flat’s worth, you’ll also need to consider what landlords are charging for similar rentals in your area. You should make sure that rent you are charging for your property is reasonable. If the rent you want to charge is unreasonable and comparatively higher than what everyone else around you are charging, you might find it difficult to find a tenant who’s willing to agree to your terms.
Other than your home worth and rental rate in your locality you should consider the following points while deciding the rent amount for your home
- View– Tenants will pay more for an apartment with a garden view than they will for an apartment with a parking lot view.
- Updates-Furnished and updated unit with advanced tool and amenities are more desirable than those without. Hence tenants tend to pay more for an updated residence.
- Square Footage– A 1,000 square foot one bedroom is more desirable than a 700 square foot one bedroom.
- Layout– Railroad style apartments are less desirable than other layouts.
- Floor Level– Higher floors are more desirable. The exception is a walk up, where after the third floor, you will have to start lowering the price because people will not want to go up and down all of the stairs.
- An extra closet, balcony or window makes a unit more desirable.