How to know how much to charge rent?
To calculate your rental charge, consider the following factors:
- Time to rent
- Guarantees Accepted
- Market price
- Time of use of the property
- Property size
- Special features
- Personal preferences
Time to rent
It would be your need to rent the property quickly or if it is okay to leave it unoccupied for some time. If you are in a hurry and want to rent your property as soon as possible, it is interesting to consider a more affordable and attractive value.
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In order to make a faster and safer rental, it is necessary to have a range of guarantee options. Thus, you do not stop renting because you are suspicious of the interested party or because he is unable to provide the necessary rental guarantee. The main types of guarantees existing on the market are as follows:
- Bail insurance
- Capitalization title
- Mortgage bond
- Land session
- Security deposit
To learn more about each of these guarantees, see this Blog Post .
If you choose a guarantee with an insurer, it is worth taking into account that the rental amount will be increased.
Another factor is the price of the property on the market. To do this, you must research the prices of other properties in the region where yours is located. Get to know the rent value of other apartments in the building or similar houses in the neighborhood, considering properties with similar size and infrastructure to yours.
The location has an important weight in the rent value. If the region is safe, the neighborhood offers good infrastructure and there is easy access to the main streets and avenues, the price will be higher.
Regarding the availability of services (market, pharmacy, school, public transport, etc.), the logic may vary. In the case of middle class properties (B and C), a location close to shopping centers will enhance the property, increasing rent. In the case of higher class properties, such as luxury condominiums, a more remote, quiet and residential location will add value to the property.
The age of the property and the time of use influence its valuation since older properties tend to cause greater problems with infrastructure or deterioration, either due to natural age or use. All of this generates the depreciation of the property. In such cases, it is important to make a reform. Periodic maintenance, such as painting, helps to conserve the property, reducing its devaluation.
New properties are more valued, as they tend to be designed with a modern structure and applied to the current needs of residents. And, in addition to being more attractive, they tend to have less structural problems.
Generally, the larger the property, the higher the rent. But here, it is necessary to find a balance between the size and the age of the property. That’s because bigger properties raise the price, but they tend to be older – which devalues. In turn, new properties are more expensive, but generally have the disadvantage of being smaller.
In addition to the size, it is necessary to consider the infrastructure of the property. In this item, what counts is the useful area. Houses or apartments with larger rooms and more bedrooms and bathrooms, for example, tend to have higher rent than land with a large green area, but with a small house.
In addition, differentials such as elevators, 24-hour concierge and party room add value to the property and, therefore, raise the rental price.
You must consider the characteristics of your property. For example, condominiums with leisure areas, apartments with a balcony, barbecue, decorated, renovated houses and with built-in cabinets make rent more expensive.
Furniture is a very important factor in defining the value of the rent. To give you an idea, depending on the quality and quantity of furniture inserted, the furnished apartments can have an increase of about 25% in value.
It is important to take into account the personal preferences of future residents. Higher-floor apartments, for example, offer more security and tranquility. For this reason, they are more valued by people.
Likewise, properties with good lighting and ventilation are preferred by the public, as the sun fights mold and moisture, providing the tenant with more health. Even properties that receive morning sunlight are even more valued.
How to calculate the rent?
To make it easier, here are some tips on how to calculate your rent:
- Build on benchmarks
- Know the sale value of the property
- Use a rental calculator
Use reference values
For the size of the property, you can base it on the values of the Basic Unit Cost, calculated by the Civil Construction Union.
As for the location, you can consider the average price on the market.
Regarding the age of the property, take as a basis the annual rate of 4% of depreciation of properties.
Know the sale value
To find out how much to charge for rent, you can start by considering a percentage between 0.3% and 0.5% of the property’s sale value. In this amount, fees such as property tax and condominium are not included.
For example, if the sale price of your property is R $ 500,000.00, the rent will be around R $ 2,000.00.
But remember: after this calculation, consider the other factors listed above. They are important, as they influence the final value.
Use a rental calculator
Another tip is to use tools like the rental calculator. By entering some data about your property, you can quickly get a sense of how much to charge for rent.
Bonus Tip: How to rent faster
Finally, it is worth remembering that, to rent your property faster, it is important to use tools that improve your ad, making it more interesting and visible to the largest number of interested parties.
But after all, what is the best site to advertise rental property? OLX, Fifth Floor, ZapImóveis, mercado livre, facebook? See the result in this Blog Post.
Now that you know how much to charge for rent, you need to show your property to interested parties. See how to make free rental listings and find the ideal tenant!