HOW TO DETERMINE THE RENT VALUE OF PROPERTY
how to Determine the Rent Value Of Property.
Tips in analyzing the rental value:
Research on rental prices for similar properties.
Try to go around and visit some properties which are around your property area to get an average rent pay for properties of the same type. Compare your property to theirs and evaluate to find which is better. When finding property to compare consider these factors:
- How many bathrooms
- How many bedrooms
- Size of the rental
Some of the above properties above could give your rental value charge. It could rise if your property is holding better options or could depreciate in price if your property is not better than the comparison.
Reminder. These are not the only factors for rental valuation. There are still factors like:
The location of the rental.
The closer to urban centers, the more it will appreciate in the rental fee compared to the rentals far away from the city. Having access to social facilities attracts more customers
Consult property management services.
Target a company that has experience in management of property. It would still be advisable to target around your property area. The tip is to get accurate information to set or trigger the maximum rental fee. They have a better understanding of the local market and also comparing the rates within similar properties.
Working with local agents.
Another rental valuation method is to inquire from the agents around the area. They have a better knowledge base in real estate. Being house agents, they tend to meet to many tenants. This knowledge can help them analyze a rental property.
Calculate rental price per square foot.
Determine the rental value by calculating the rental value per sft. If you cannot find a similar property then this is the rent calculator.
Calculating the rental price per sq ft, divide the rental price by total area in sft. If the property is 200ft, and the total price rent is USD $600 per month. The rent price per square feet will $600/200 ft= USD $3 per square foot per month.
Finally, apply the per sft rental value from the above equation and calculate the rental value of your property.