5 things that tenants value in a rental apartment - Bidrento (2024)

FAQs

5 things that tenants value in a rental apartment - Bidrento? ›

Over half of renters (62 percent) place more importance on the location rather than the unit itself. Also, 74 percent say they are moving to a place they feel is familiar to them.

Over half of renters (62 percent) place more importance on the location rather than the unit itself. Also, 74 percent say they are moving to a place they feel is familiar to them.

The ability and willingness to: pay rent, care for the rental property, avoid creating disturbances, and avoid drama. Good tenants care enough to at least try to make a good impression. They are friendly, show up on time, display some level of excitement for the rental property, and are respectful to the landlord.

Building Condition. A property in pristine condition will command a higher rental rate than one that requires extensive repairs or updates. Costs associated with necessary renovations, refurbishments, or improvements directly impact the cost of rent when the property is ready to be leased.

Tenant lifetime value is the total amount of revenue that a tenant generates for a landlord over the course of their tenancy. This includes: all rent payments. fees. other charges that the tenant may incur during their stay.

The sales comparison method is one of the most common valuation methods for single-family rental properties and land. With this method, you calculate property value based on similar properties that were recently sold in your market. You need to have at least three comparable properties to properly assess value.

My name is and I am very interested in renting the apartment you have available at . I currently live at and have lived there for years. I am looking for a new place to live because . I really like your apartment because .

What adds the most value to properties? ›

Also known as GRM, the gross rent multiplier approach is one of the simplest ways to determine the fair market value of a property. To calculate GRM, simply divide the current property market value or purchase price by the gross annual rental income: Gross Rent Multiplier = Property Price or Value / Gross Rental Income.

Effective rent is a rental figure that accounts for any rent-free periods and other incentives provided to you as the tenant. It's the amount you'll pay each month or year when averaged out over your lease term. Effective rent is the number you want to use when comparing options.

The most important factor is the income potential of the property. That includes things like the income from rent, occupancy rate, and any other income sources like parking fees or laundry facilities.

Biggest predictors for rental prices are number of rooms, number of bathrooms and locations.

Comparable Rentals

To determine an appropriate rental price, property managers often perform a “comparative market analysis” or “comps.” This involves comparing the subject property to similar properties in the same location that have been recently rented or are currently on the market.

High-Tenant Properties – Typically, properties with a high number of tenants will give the best return on investment. These properties include RVs, self-storage, apartment complexes, and office spaces.

Also known as GRM, the gross rent multiplier approach is one of the simplest ways to determine the fair market value of a property. To calculate GRM, simply divide the current property market value or purchase price by the gross annual rental income: Gross Rent Multiplier = Property Price or Value / Gross Rental Income.

When it comes to answering that question, there's no universal answer other than, “1 or more”. If you haven't purchased your first rental property yet, start at 1. Regardless of your investment experience, the best answer for you is going to come down to your goals.