What’s fair rent? Find out your local market rates

Money is equivalent to a lifeline or road to a good life in today’s world. Its value and importance cannot be neglected. Surely, money is not greater than other things like family, friends, love, and happiness but without it, life may become halted. In the modern world, there are several ways to earn money. One way to earn money is through investments. Investments are way to multiply money and ensure growth of wealth. There are several investment options such as shares, property, metals, currency, commodities etc.

Property is one of the most rewarding options as it multiplies and gives assured returns. Many people buy property just to rent it or as a vacation house. Renting is a smart way to create a regular and stable income. It also does not require much effort as one receives rent while he or she is just sitting at his or her home, the other house is taken care by someone else, and the owner is paid for the care taken! A person may have a property but find it difficult and complex to decide the perfect rent amount for a house. Here are few steps that one must take to decide a proper rent amount:-

  1. Local market rates: – it is important to research and find out what are the local market rates in the area. They would prove to be a vital factor while deciding the rental amount. If a person lives in Chennai and wishes to give his flat for rent in Chennai, then he should be aware of the current rent rate. The rate should be in accordance to the market rate or there would be some price war created in the market, which would lead to cut throat competition. Therefore, one must be aware of the market rate and give the flat for rent on that rate only.
  2. Amenities offered: – amenities can act as a bait to get high amount of rent. The market rates are usually the base prices and the general rates that are for the property and not for the amenities included. An owner may choose to provide more facilities and for that, he may charge extra rent. Many people would agree to this since they are getting everything at once and they need not go through the extra hassle of the formalities involved in that process.
  3. Age of the property: – the age of the house also acts as a springboard to boost the rent amount. Customers would not mind putting in few extra bucks if they get a newly built and exotic house instead of an old and somewhat outdated property. It is all about the age of the property. Market rates only set a baseline and the negotiation skills of the owner prove to be handy while making a deal. If the owner convinces the customer on any of the points, then, he or she would get a notch higher than the prevailing market rates.
  4. Furniture:- providing furniture with the property can act as a game changer. The type of furniture also plays an important role in deciding the rent. Customer would be more than happy to receive modular and up to date furniture for some brownie amount. No wonder as to why every flat for rent in Chennai with furniture gets a customer in some time!

Thus, the above are the tips to find out a fair rent for the property! A fair rent would be one where both the parties are happy with the amount without any feeling exploited! Therefore, decide wisely and earn finely!

Author: Eddy

Eddy is the editorial columnist in Business Fundas, and oversees partner relationships. He posts articles of partners on various topics related to strategy, marketing, supply chain, technology management, social media, e-business, finance, economics and operations management. The articles posted are copyrighted under a Creative Commons unported license 4.0. To contact him, please direct your emails to editor.webposts@gmail.com.