[quote=EconProf]I guess I didn’t make myself clear.
The market rent for one’s particular unit incorporates all the factors you bring up. The market rent for an extra nice unit, or a better location, or an ocean view, etc. will naturally be higher. A unit with negatives would command a lower market rent.
Accordingly, one should never charge “above market rent”. Again, the hard part is “price discovery”–to objectively look at comps and find your proper rent.[/quote]
You know I’m not so sure about this…
Call me old school. But I think a some (not all) of these bells and whistles extra might help you get more eyeballs in people interested in renting your place, BUT, personally I haven’t seen a situation in which having these fancier bells and whistles actually increases the price people are willing to pay for rent, IF there is a like-unit that is priced slightly lower that doesn’t have the bells and whistles.
I’ll give you an example comparing one property of mine to a comparable right next to me…
The “comparable”
1) Is 20 sqft bigger
2) Is upstairs instead of downstairs
3) Has granite counters, stainless steel appliances, tile, and upgraded bathrooms.
That condo, whom I spoke to the owner recently, rented out for a whopping $5/month more than my unit. Person also paid $15k more than i did in the purchase.
So I’m not convinced all those bells and whistles are really helping to increase what you can charge for rent. I think there is a threshold in which people say “this isn’t my house, and while fancier stuff is nice, I’m not willing to pay for it”
