Location: Location is one of the key factors which command higher rent. People are ready to rent even if there are no satisfying amenities only because of the location’s convenience and popularity.
- The properties near school add more value to the families having children
- Students are willing to pay more rent for units located nearby to their colleges
- Easy access to public transportation is the major plus to attract many people
Amenities: Tenants are willing to pay more rent for certain conveniences and comforts. The properties having attractive facilities and planned developments are more likely to have higher rents when compared to other properties which do not have desirable features.
- Units having outdoor decks or balconies are more attractive to renters. Having pools, Tennis courts and Fitness centers are more attractive and increase the rental value.
- A reserved parking space also has an impact on the rental value as most of the renters own cars in urban areas. A covered parking would further increase the rental value.
- Children’s play areas will attract families with children which helps the parents to save their time and safety issues.
- Having CCTV cameras and security guards will enhance the security measures taken by the society and add up to higher rental value.
Desirability of the property: The size and layout of the property matters the most in calculating the rental value. High end finishing, contemporary design elements and appliances command higher rents.
- The area affects the rental value. For example, If a renter sees a 800 sqft flat and a 1100 sq ft flat, he will likely be more attracted to the larger apartment and will be convinced to pay more.
- Considering the apartments, you can charge more for the flats in higher floors when it’s specially a taller building having elevators. However In the case of a basic three or four floored apartments the ground level flats can be charged more rent than the higher levels as the tenant might have to climb less stairs.
- Interiors of the property also impact on rental value. Properties having false ceiling, modular kitchens, furniture and design oriented paints command a higher rent than the basic properties.
- The layout of the property affects the rental value. Renters love open floor plans. A property with an open floor plan looks bigger than the one without it and commands in a higher rent.
- Facilities like Municipal water, direct gas connection and Internet ports are some of the desirable things for the renters.
Rental prices: Adjusting the rental price according to the changes in the market is most important when coming to factors impacting rental value. For example, if the economy is bad the demand for rental properties increases because people don’t want to buy homes. This is proportional to higher rents. But the rental value decreases you must charge less to continue attracting the tenants.
- If you rent seasonally, the rental price should be more in peak seasons and decrease during the off season.
- Having multiple options in terms of leasing or renting would add up to increase the rental value. Not all of the renters require the property for a longer period of time. So having multiple rental options would attract all types of renters and help in increasing the rental value.
- Short term lease or rent, rentals can be charged higher than the long term leases.
- Setting up the correct amount of security deposit is the key in attracting renters. If the deposit is too high you may have trouble attracting the renters.