The location of the rental property can dramatically affect the price. In fact, it can even determine the market of tenants a property will draw.
In the case of a city, for instance, its most posh neighborhood often carries an expensive. These apartments are typically located in close proximity to popular restaurants as well as stores. In addition, they tend to provide amenities on-site for the benefit of all members.
Impact of Location on Rent
The location of a property’s town or the suburbs can influence the price of rent. Some locations are more desirable than others, and could boost the potential of a rental’s earnings.
A major business or industry emerging or leaving a region can also add to or decrease the value of renting a property. The city that has a robust economy typically has higher rental prices than a city with weak economic activity.
Neighborhood characteristics are not as easy to measure as structural characteristics, but they may have an impact on rental home prices. As an example, communities which have had a history of natural disasters can attract higher insurance costs over those that have no such history.
Furthermore, the safety of your neighborhood is an important consideration for a majority of renters. A city or region’s history of violence, crime and gangs can impact rental costs.
Urban vs. Suburban Rental Prices
The decision of a renter to reside in a city or suburbs may be based upon various aspects. But, the main reason is generally cost. The cities typically have greater rental prices, since space is a premium when cities are densely populated and there are more looking to rent there.
Suburban rental properties are generally more affordable, and they have a lot to offer budget-conscious renters. For instance, families who don’t have the money to purchase homes often opt to lease a one-family home located in the suburbs. They will have plenty of space and privacy for their children.
In the course of the epidemic the suburban rents grew faster than the core city. But, as rent declines are more apparent in the core cities, the disparity between suburban and urban rents has narrowed.
Neighborhood Desirability in Rentals
The area in which a apartment is situated can be a major influence on the rental amount you may charge. A few macro variables include general economic situation and neighborhood’s population.
A school that is in good condition is another factor that can affect the appeal of a property. Although the renter may not have kids, living in a good school district could increase the value of the home when it comes time to sell.
There is a widespread belief that renting out homes harms neighboring prices, however Rohe notes there isn’t enough research on this to know for sure. He does say that homeowners have valid motives to worry about the abundance of rental property within a particular neighborhood. It could be due to a perception that tenants don’t add value to an area and bring down nearby home values.
City Size and Rental Costs
One of the biggest factors when it comes to determining the cost of renting an apartment is its location. According to the old saying, “location, location, location.” The closer to facilities like public transportation, grocery stores as well as restaurants that a property is, the more expensive the rent will be.
The rental market is also different between cities and even within the city’s neighborhoods as well, which is why a city garden apartment for rent owner has to conduct research and understand what’s driving prices prior to listing the property. This can include local economic and municipal rate as well as the season. For cities that have the highest consumer price indexes for example, it may be more beneficial to own the home rather than renting. However, in other cities there is a reverse.
Transportation Proximity and Rent
In a city, close proximity to public transit could have a significant impact on home values and, consequently rental numbers. But that’s only true in cases of the correct kind of public transit. It’s for instance, not unusual to charge an extra amount for a residence located near an Boston MBTA station, but quite another to ask for the same price for a house that is situated next to a busy freeway ramp.
To examine the influence of location on rental prices the study makes use of geostatistical methods for estimating hedonic models for the standard dwelling. These are then used to generate an isovalue map that shows the major and minor effects by zone. The findings show that transportation’s proximity is a key component in determining rent prices as well as that the effects are stronger in cities with subway systems than in those which do not.