Homeowners still face many questions when it comes to how much to charge for rent in tajresidencia. Factors such as location, state of conservation, built area, security and number of rooms, must be taken into account when calculating the value of the property. In addition to the property’s own valuation, the lessee can study his / her return on investment needs and count on the help of reputable real estate agents to determine a fair value and still yield profits.
What influences the rent?
Many people choose to purchase more than one property over a lifetime. Due to the real estate valuation, this investment is usually quite profitable, and putting these properties for lease is a way to acquire extra income. Several factors influence how much to charge rent. The ideal is to find a balance between the characteristics of the property and how much the owner intends to collect with the rent.
First, you should think about how long you plan to rent the property. Urgency requires that the value be more attractive and in some cases, below the market value. In addition, the location is a very important point. The areas closer to the center are more sought after and, therefore, these properties tend to have a higher rent value and spend less time available.
In addition, there are objective and subjective aspects that influence the amount charged for rent. Some trends have already been agreed, such as the case where apartments on higher floors are worth more when compared to a similar one on lower floors. In addition, properties that receive more sunlight during the day are the most sought after and therefore have the highest value. The question of supply and demand in this case is quite influential.
Knowing the real estate market in the region of your property can be a strong indicator of how much to charge for rent. This search can be done through websites, newspaper ads and real estate portals and will give scope to define the rent value of your property. In addition, it is important to look for properties whose characteristics and purposes are similar to yours, because residential properties are evaluated differently from commercial ones.
Need for cost and maintenance
Older properties generally require more maintenance and this can influence how much to charge for rent. This is because an older property may need repairs to its hydraulic or electrical parts, and thus, the tenant will have to bear some costs, which reduces its profit margin. The amounts of these renovations can be discounted in the rent, or the owner can choose to carry out the repairs and only then place the property for rent.
When calculating how much to charge for rent, the size of the property is a very important factor. The larger the length of the property, the higher the rental price can be. However, this is not a rule, because the tenant may have to bear other costs, such as the condominium and other fees. If these values are high, the need to reduce rent may arise in order for the property to be attractive.
Technically, the values associated with the size and finish of the property are referenced by the Basic Unit Cost (CUB). This benchmark is calculated by the Civil Construction Union (Sinduscon) of the state where the property is located.
Condo and property tax
Considering the value of the condominium and the property tax is fundamental when defining how much to charge for rent. For example, if the property tax is already paid, this can be added to the rental price. In relation to condominiums, the facilities offered such as a leisure area, security equipment, elevators and porters can mean a higher condominium fee, which requires a more attractive rental.
The age of the property has a major influence on the rent. Thus, a new or semi-new property may have a higher rental value since its structure is usually more modern and prepared to receive the tenant. This structure may involve a more modern electrical connection, in addition to other amenities.
However, the reverse can also happen. Older properties, however, well valued may have the most expensive rent. Thus, knowing the real estate market in the region is important when it comes to pricing properties.
When to charge rent: understand the step by step
1st step: evaluate the property
Usually, the rent value is calculated on a percentage of the property value and this percentage varies between 0.3% and 0.5%. There was a time when the percentage varied around 1% of the property’s value, however, several market transformations reduced this value. For example, if an apartment is valued at R $ 150,000,000, its rent can vary between R $ 450.00 and R $ 750.00.
2nd step: define the rental characteristics of the property
Defining whether the property will be furnished directly influences how much to charge for rent. For properties ready to live, the structure offered can mean 30% more than the amount charged. In addition, these developments tend to be rented more quickly than unfurnished properties.
3rd step: search for the values of the region
Researching the amounts charged in the region is a way to establish an average price for your rent. Look for properties similar to yours, whether in footage or similar infrastructure. For this consultation, you can visit portals that inform the value of the square meter in each region, or even search real estate websites for properties similar to yours in the same neighborhood.
4th step: evaluate the location
Equal properties can be valued differently due to their location. Thus, an apartment located in a neighborhood considered noble will be valued with a higher value than in other regions, even if its structures are similar.
Search for a reliable real estate agent
Professionals such as real estate brokers have knowledge of the market and experiences that can assist you in the process of evaluating and renting real estate. The Mining House Real Estate, for example, has years of experience plus a great reputation in the market, increasing its reliability when it comes to renting your property. In addition, real estate agents can offer services such as:
- Disclosure of the property;
- Assistance in the bureaucratic part;
- Decreases the chances of default, since the real estate companies have a specific sector for this type of situation;
- Drafting the lease;
- Monitoring visits by interested parties in the property;
- Avoids fraud, scams and other problems in the lease;
Understand rental guarantees
An important point when establishing a rental agreement concerns your guarantees. It is up to the lessor with the real estate agency to define which guarantees will be accepted. They can be from the best known as the guarantor, or from the less usual ones as capitalization bonds. These options do not directly influence the value of the property, but make the property more attractive to future tenants.
Issues such as restrictions on credit restriction services can lead tenants to opt for capitalization bonds as collateral. As this option is calculated based on the rent, the high cost of the lease can inhibit potential tenants.
The challenges when it comes to defining how much to charge for rent
The crisis in the real estate market has changed the way of defining the value of rental properties. The well-known “golden rule” of pricing has been outdated. This is because, it is necessary to find the balance between what the owner intends to profit and how much the future tenant can pay. The calculation of this value involves several factors such as location, comparison with similar properties and state of the property.
In addition, the percentage calculated on the value of the property may vary according to the market itself. In 2013, for example, these numbers reached 0.5% of the sale price, however, in 2014 with the economic crisis the value started to represent 0.3% of the property’s value.
Due to this variation, the ideal is that the owners look for the real estate agents to help at that moment. Market specialists, brokers have experience in these activities. If your intention is to rent a residence, the Casa Mineira portal has several properties with different values, which can be filtered with our tool, so that you will find the ideal one for your needs.