The property business is a business that has promising advantages, so it’s not surprising if there are not a few emerging property companies.
Even your individuals can run this business. But not all people have the right knowledge in assessing the rental price of their apartments. This is how the technique of assessing the price of an apartment for rent! Determining the apartment rental price is important because it will also assess whether the occupancy that you have can be sold immediately at a reasonable price.
How to Determine Apartment Rental Prices
For those of you who own property and manage it yourself, you have to be quite smart in assessing the price that will be installed. If you are wrong in calculating for sure, you will feel a loss not to mention the management costs that can swell later. Setting prices that are too high will create apartments that are difficult to rent. Usually, people dig for comfortable housing that is cheap and does not make holes in the bag. For that, carefulness is needed in calculating what rental price is right for the apartment you have.
Every property entrepreneur has his technique to calculate rental costs, but basically, the rules used are the same. If you also have an interest in investing your apartment, you need to know how to use techniques and tips to assess apartment rental prices to sell on the market. Based on information from the East Rentals and much successful info collected, the following are appropriate ways to assess the apartment rental price
Ask Friends or Contacts
To be able to judge a favorable price but not set a price too high, you can use the technique of asking a colleague or acquaintance who has business experience in the property sector.
Especially if he ever had a business leasing an apartment or house. Maybe your friend who has info about apartment rentals in central Jakarta or apartment rentals in Surabaya can help assess prices. Don’t hesitate to ask each detail about apartment prices, techniques to assess prices, and management. For you to better understand, try to find information on the internet or other media around apartments and property businesses. While looking for techniques to assess prices, you can also learn about the right business.
How to Determine Rental Prices
There are not a few references that you can read to assess the apartment rental price that you will market. And it turns out there are two techniques that can be used to calculate the rental price of a property. Following are the details of the explanation:
- See Market Prices
When you want to assess the price of a business property that you need to do is to watch the market price. The first step is to see and match between your apartment and the other apartment. In terms of convenience and the same extent, you can begin to assess prices according to the information you get. Look for apartments that have the same details as the apartment you have. Do not forget to adjust it to the convenience that there are examples of tv, air conditioning, kitchen devices, and others.
Also, position yourself as a tenant, if the price you keep is that and the property obtained is also the case whether you are suitable or not. If appropriate, the price decided is right. The less facilities you provide, the rental price can also be higher, but if you offer convenience that is not comprehensive, try to adjust the price. Here the prospective tenants will also see if your apartment is worthy of being chartered at a price specified or not.
- Use the Cap Rate System
Besides using the technique above, you can also use the Rate capitalization system. This method is often used by many property companies to assess the rental price of their apartments. How to assess rental prices utilizing this system is:
Rental Price (Rupiah / year) = Property price x cap rate (%)
The average stamp value ranges from 7 to 10 percent, for example, for example, the stamp rate is 8%, and the selling price of the apartment is around 600 million. Means the technique of calculating it is 600 million x 8%, the rental value generated is 48 million per year. If you want to be chartered monthly means the price you offer ranges from 4 million per month.
Consider Apartment Insurance Costs
As someone who has an apartment, of course, you are also responsible for the destruction that can occur when there is a natural disaster. For that, you also need insurance calculations that must be included in the apartment rental price that you will offer.
By entering insurance costs, you have a warranty that can be used if there is a breakdown and so on. Don’t worry, when there are not a few insurance companies that offer a comprehensive package in the property sector. There are also insurance companies that guarantee health and safety.
Doing business through a property business is now one of the promising activities. Especially when not a few people are digging for high-paying job vacancies to be able to fill their dream of living in a comfortable, luxurious, and pleasant residence. You can use this opportunity to grow your business. Especially if the apartment you have is in an urban area, you can set a higher price compared to a residence located far from the city center.
However, you also need to consider it and match it with the apartment around it. Do not let the price that you set turns out to be a very high price compared to other apartments. People cannot be interested in apartments that will be rented out.
Is the apartment difficult to sell?
Determining the price to rent an apartment is indeed not a business that must be felt trivial. For that, not a little information and knowledge that you must learn first. Right now, there are not a few apartments that have not sold well because the prices installed do not match the criteria they have. Well, what causes the apartment to be hard to sell? This is the reason:
- The location of the apartment is too far from the city center, and access is difficult to reach by public transportation because often people will consider how the place from the office is accessible or difficult to reach.
- Not useful apartment facilities also make your apartment prices go down. People who have an interest in their apartments are getting fewer because they feel that the facilities provided cannot be used properly.
- The third reason is the lack of care. Although not chartered, the owner must care for his occupancy so that when rented people do not feel uncomfortable and disturbed. The better you take care of the apartment, so not a few people will have more interest when watching the apartment.
- Prices that are installed too high can also cause the apartment to be difficult to sell. So try to pay attention to the techniques above so that you can assess the right rental price for an apartment.