When renting a home there are many aspects to take into account, but probably one of the most difficult is setting the rental price. If you also ask yourself, “how much is my apartment worth?”, pay attention to this article, where we tell you how to correctly calculate the rent for your apartment.
Factors that influence the price
For an owner, setting the rental price is not easy. On the one hand, there are owners who are afraid of setting a price that is too high and not receiving tenants. On the other hand, there are those who are afraid of setting a price below the correct one, and losing money. Therefore, here are the main factors that affect the value of a lease:
- Market situation: The first step to setting an appropriate rental price is to evaluate the rental market in your neighborhood or city. To do this, you must take as a reference those homes that are for rent in your same area and that resemble yours. At AB Apartment Barcelona, we have state-of-the-art software to check the status of rental prices in Barcelona on a daily basis.
- Location: Did you know that the location of the apartment can determine 40% of the rental price? That is why, depending on the area, the price will be one or the other. We must take into account the value of the neighbourhood, the proximity to essential services (health centers, schools, supermarkets, pharmacies, parks…), the connections with public transport and accessibility, and the demand in the area.
- Characteristics and condition of the property: Likewise, another essential factor is to assess the benefits of the house itself: the surface (m2), the number of rooms, the bathrooms available, if there is a terrace or garden, garage, swimming pool, etc. It is also important to take into account the current state of the home. That is, if it is recently renovated, the price will be higher or, for example, the price will be different if it is rented with or without furniture.
Errors when setting the rental price
It is necessary to avoid looking at the following aspects:
- Mortgage: Looking at the mortgage when establishing the rental price is one of the most common mistakes. The amount of the mortgage should never be taken as a reference for this, since it probably does not adjust to the characteristics of the property or the environment.
- Third-party opinions: Many people are influenced by the opinion of family or friends, about what price to put on the apartment. However, having the opinion of an expert agency in the real estate sector will avoid problems and help you establish the ideal price for your apartment.
- Feelings: It is important that your feelings of affection and nostalgia for all the experiences you have had in this house do not get in the way when you are going to set the rental price. Otherwise, it will take more time to rent it.
What does the rental price include?
Once you have set the rental amount, you have to be aware of what is in your hands and what will be paid by the tenant.
In general, the expenses of the community are borne by the owner of the property. However, according to the Urban Leasing Law, it is allowed to charge them to the tenant as long as it is specified in the rental contract.
On the other hand, in the case of tourist apartments, the costs of supplies and cleaning are included in the rental price. However, in the case of seasonal rentals, utility costs are charged to the tenant apart from the rental price.
Rental profitability
In any case, for the rental of the apartment to be profitable, it must cover, at least, the expenses that it causes us. This involves taxes, monthly community fees, etc.
Everything will also depend on the urgency with which you want to rent the apartment. In this sense, it is always advisable to have the services of a professional to help you establish a price that meets your needs. The AB Apartment Barcelona team is at your disposal to help you with any questions!
