The below topics are discussed in much more depth on our members' Rent Rates page.
In the years BC , (before Carter and double digit inflation) rent rates were usually a simple factor of a property's value. Therefore, determining likely rents was relatively easy. A typical one or two family home rented for about 1% of the fair market value .
A landlord's success now depends on whether he is capable of finding, fixing and providing rental property profitably, at rents determined by forces that have little to do with a free market, or landlord's cost of doing business.
There are as many misunderstandings about how, when, and why landlords raise the rent, as there are misconceptions about landlords. Certainly, in a free market, competition is the most important single criteria. However, in the real world, (at least that of low and moderate income property) government now plays the major roll in setting rental rates.
Rent rates always depend on several factors:
The above topics are discussed in much more depth on our members' Rent Rates page and also in our Property Management Web.