Determine Apartment Rental Prices This Way
24 July 2022
Owning your own property is a huge advantage. As an investment product that is timeless, property can be rented out for passive income.
Newtizens are still confused about determining the rental price for the property? Please check the post above. I hope this helps!
Cap Rate System
Cap Rate or capitalization is an indicator that is often used in the business of selling and buying property. The formula:
Property Price x Cap Rate (%) = Rental price / year
Based on NJOP
The opposite of the Cap Rate, this method is commonly used for apartments that have been around for a long time. The amount of the rental fee is calculated using the following formula:
Value of NJOP x 7-8% = Rental price / year
Check Market Price
Find out the rental price for the same type of unit and facilities in the same apartment location, from there you can set the price.
Yield is the profit calculated from the rental value per year compared to the property price. Normally, the yield value for apartments is 7-10% of the apartment unit price
Goods Maintenance Fee
If you rent a full-furnished apartment, don't forget to calculate the service life of the items in the apartment plus the cost of maintenance and repairs if they are damaged.
For more information, contact Marketing Gallery The Newton 2:
Tokopedia Tower Level 6
Phone: (021) 2988 8888
Whatsapp: 0811 761 6888