Make your apartment hunt easier by understanding what determines the price
Market rent is the monthly rate for properties within a specific area.
Research rent rates in your desired location prior to touring apartments.
Market rent is determined by several factors, including location and amenities.
On the hunt to find your next apartment? Landing a perfect apartment with a rent price that falls within your budget can be challenging. Luckily, understanding why apartments differ in rent price is a great way to be more efficient and productive when searching for apartments. Let’s take a look at what factors influence the rent of an apartment.
When you’re preparing to search for your new apartment, a key consideration is market rent.
Market rent is the rent that a property could command based on its location, amenities, and other factors without factoring in rent or income subsidies or restrictions. Generally, the local market determines market rent rates, including how much renters in the area are willing and able to pay for a similar type of property.
When you get started on your apartment hunt, it’s helpful to recognize the significant factors that affect rental prices.
Location is a major factor that influences an apartment’s rent rate. The location will partially determine a baseline rental rate, public demand, and target market. Location may refer to a city or town or be as specific as a street or block.
If you’re looking to live in an apartment near essential services such as schools, shopping, and public transportation, the rent will likely be higher than it would be in a more remote area.
Typically, the number of bedrooms positively correlates with the rent price. That is, the more bedrooms, the higher the rent. If you’re looking to cut down on rent costs, you may need to search for apartments with fewer bedrooms.
Certain apartment amenities and appliances will increase the rent of an apartment. Two appliances that drive up costs are dishwashers and in-unit or in-building laundry services.
You can expect the rental price to increase with the number of amenities, including garbage disposals, doormen, fireplaces, outdoor spaces, and facility gyms. Keep in mind that recently updated appliances will garner higher rent rates than apartments with outdated or worn appliances.
An apartment’s pet policies can make or break your decision to rent a new place. Unfortunately, bringing your furry (or scaly) friend with you has its complications—the major one being cost.
Usually, an apartment that allows pets will have a higher rent than one that doesn’t. Some landlords or apartment management teams are cautious about allowing pets because they could potentially damage their property.
For many people, whether an apartment building offers parking spaces is a big factor in their decision. Apartments with accessible parking can make your life much easier since you won’t need to spend hours circling the block looking for a spot.
On the flipside, apartments with more parking available will likely increase an apartment’s rent. Keep in mind that many apartment complexes charge residents additional monthly fees to park in a designated spot or garage.
The size of an apartment almost always influences the rent. In most cases, you can expect that more square footage corresponds to higher rent. Similar to the number of bedrooms, you can cut down on rental costs by finding an apartment with less square footage.
If you have many items that you don’t need during certain parts of the year, you may be looking for an apartment that offers storage units. An apartment that features storage space or storage units will likely have a higher rent rate than one without storage units.
There are a few ways you can research market rent rates. A great way to determine market rent rates is to use online tools that can provide renting estimates using information that you provide about the area and number of bedrooms desired. These estimates are based on average rent prices in the area of properties similar to the type you’re looking to rent.
Another option is to drive around the specific neighborhood or area and look for apartments available for rent. When you find properties you like, contact the apartment manager or landlord to find out the rental price.
You can also contact local property management companies to learn more about local rental rates. These companies will likely be able to offer you information about certain rental properties. You can also hire a professional apartment locator who will have the knowledge and tools to help you find a great next apartment.
