If you are planning on renting out your luxury property, it is crucial to select the most convenient market price. Discover some of the factors to consider when determining the price of your property. Look into them here!
The process of choosing the right price step by step
High end and luxury homes
have some specific characteristics that distinguish them from the other estates. Primely is the property location, followed by its amenities, number of rooms, and views. It is these elements that are determing the value of the property and, accordingly, the monthly rent that you can demand from the future tenants. Consider that luxury furniture and interior significantly increase the value of the monthly rent. Same would apply for the proximity of the estate to key sites, as well as if the apartment is located in an affluent neighborhood.
You can always contact an agency for a consultation
Finding great tenants can be challenging, especially in the luxury segment. Consequently, it is best to trust the specialists in the field – the real estate consultants. In addition to saving you a lot of time and effort, the agency will take care of everything, related to the search and selection of prospective tenants, as well as the entire administrative and legal part of the deal.
Among the other significant advantages of the consulting agencies is their great client’s database which will grant you access to a larger list of potential tenants. As real estate consultants specialize in communication and negotiation with clients, they will prepare all the documentation and will assist in case any problems occur with the tenants during the rental period. Using the services of a broker would reduce the risk of concluding an unprofitable deal, as he is quite familiar with the regulations and processes in depth and is aware of the rights and obligations of both parties. In the event of a legal case, the experts from the legal department of the agency can assist, which should not be underestimated.
When it comes to high-end residential properties, the significant part is how they are being advertised. Agencies that specialize in selling and renting luxury properties can prepare a complete advertising plan, including both the messages and the communication channels for reaching potential customers.
The contract is the essential part of closing the deal with your future tenant. The consulting company will provide you with full assistance in conducting negotiations and preparing the rental agreement, which usually includes clauses, specifying the period of validity of the contract, rental price, deposit, terms of payment, rights and obligations of both the tenant and the landlord, the termination clause, etc. It is recommended that the handover protocol be included in the agreement, especially when it comes to a luxury estate with modern furniture.
Estimate your property costs up to the time of rental
Once you have decided to rent your luxury property
, you must consider what expenses you have had for it in the past – for instance, home renovation or furniture upgrade. The appearance of the estate is directly related to the determination of the monthly rent. The consultant can also be useful with counselling how to make your property more attractive to the tenants. Accordingly, it is possible to invest additional funds in refreshment and furniture, which you might take into account.
It is crucial to note that after renting the apartment, you will also have some maintenance costs. This may include various elements, depending on the agreement with the tenant, and it may even be necessary to replace depreciated furniture or electrical appliances. Luxury property tenants have specific requirements and expect the finest. In this regard, you won’t meet their needs if you replace the broken, but high quality appliance with one of a lower class. Therefore, calculate approximately what you have invested in the home so far, so that you can adequately determine the monthly rent you will require from the tenants.
Consider the amenities of the property
The amenities and the overall interior are also advisable to be taken into account when determining the monthly rent price. Natural and expensive materials used for furniture, as well as quality appliances have a direct bearing on the final decision on the rental price.
Active drivers in the capital city inevitably find themselves in a situation where they do not have access to a free parking space in front of their building. Therefore, the presence of a parking space or a garage in addition to the apartment is considered an extra, which greatly facilitates the daily life of the tenants. The presence of more and more neighborhoods in Sofia with paid parking zones and greater construction, respectively, and a growing residents number, makes tenants look for the option of included parking spaces for their car. Consider that renting a parking space or garage in a residential building further increases the rent. Garage prices vary, depending on their size, condition and location. It is a matter of personal choice whether you decide to rent out the parking space separately, or in a package with your property.
Be sure to consider the location
The estate location is among the most essential factors that affect the price of the property. It is no coincidence that the prices of rental apartments in Sofia are directly related to the neighborhood in which they are located. Apart from the area, it is also crucial how communicative the place is, ie. are there convenient public transport stops nearby, is the infrastructure well arranged, what is the proximity to key sites, etc. Certainly, the personal preferences of each tenant depend on his lifestyle and are strictly individual for everyone, but the price range in different neighborhoods and areas vary and it is advisable to be considered. The development of subway lines also affects the rents in the area. There is a tendency for the prices of rental apartments in Sofia, located near the metro line, to be given at a higher price compared to those in other areas.
Determine the price, taking into account the size of the property and the construction type
The apartment space is no less important factor that affects the rental price. The larger the area of your luxury home, the more spacious the individual rooms, and consequently the higher the price you can offer. Advantages are the presence of a work space, relaxation room, or a sports one, a library, extra bathrooms, a terrace with a breathtaking view, a jacuzzi or other luxury additions.
The construction type is another indicator that also matters for the final rent value. Quality construction can be a significant factor in higher rental prices. In your pricing you can take into account factors such as well-maintained common areas, concierge and video surveillance, additional services in the building.
Find out at what price you would rent the property
Establishing a market price is a complex process that requires extensive market knowledge and experience. It is important to consider that setting a price that is much higher than the market will push back potential tenants. To afford such a step, the home must have exclusive extras. Otherwise, you risk keeping the home on the market for a long time. This is a time when the cost of maintaining your prestigious property will continue to flow. On the other hand, announcing too low of a price will also bring you losses, as you will not have the right to change the price until the contract expires.
Thus, it is best to consult with a highly qualified real estate agent to get an objective assessment of the opportunities that your property has. Unique Estates
consultants will assist you in the most effective way, by determining the exact rental price of your property, entirely in your favor. The company has a rich portfolio of properties and has built a long-standing client’s database with a higher living standard. From Unique Estates
experts you will receive a real assessment of your desired investment or return on a property, based on facts, verified opinions and applicable standards.