The goal of keeping fair rent on a property is to attract tenants, cover expenses and hopefully put some money in the pocket so that a void period can be compensated.
In that hurry setting a standard price for all one bed-room apartments or maintaining a standard difference between one and two bedrooms will be a mistake. If the units are not identical it will hurt. So charging slightly different rents on the basis of desirability of a unit will be a fine approach.
In rental too, same rental price for two similar units would make sense. But tenants will see both units differently and pitch for the second floor unit where an extra closet will attract them as more value for their money.
And prospective tenants will also search for apartments elsewhere because they feel the ground floor unit is overpriced. Feasible way is to charge extra five to ten dollars a month for the second floor unit.
Parameters for Rent Calculation
View- Obviously a garden view is more desirable than seeing the parking lot every day.
Updates-units with updated appliances and hardwood floors are desirable than otherwise.
Area – A single bedroom of 1,000 square foot one is more desirable than a 700 square foot one bedroom.
Layout- Railroad style apartments are not desirable than other layouts.
Floor Level- Higher floors are desirable barring a walk up where the third floor start on wards prices will drop as people will not want to go up and down all the time.
When the rent is kept too high or too low prospective tenants will stay away. Although higher price indicates status and apartment does not have the location or amenities to back up the price tag, prospective tenants will even excuse from seeing that property.
If your rental is too low people will not come because something is wrong with your property. To be successful as a landlord be there at the perfect price point.
Do not set a one-time price for rental and then forget it. Constantly look at the market and adjust the rent as per demand. When the economy is bad, the demand for rentals will go up because people cannot afford their homes or are forced to rent out. A bad economy can cause a greater demand for smaller, cheaper apartments because people want to downsize. During the summer, demand for larger apartments may be high because families are moving before school year starts.
The rent should cover mortgage payment if there is one, maintenance and repairs of the property and the costs of void period. In such a scenario landlords may be able to put at least five percent of the rent in their pocket each month as a profit.
Notting Hill gate
Notting Hill and surrounding areas offer great cultural diversity. It is artistic and Notting Hill is liked by youngsters and professionals who make bulk of the rental crowd. There are nice flats to rent in Notting Hill Gate particularly at Linden Gardens in close proximity to underground station.