The estimation of a rent for an apartment or a house follows very precise rules. It is part of real estate management and it is crucial to set a rent that corresponds exactly to the market reality. If the rent is too high, it will be very difficult to find an interested person. If on the other hand the rent is too low, you will easily find a tenant, but your income will unfortunately not be optimized.
Therefore, the estimation of an apartment for rent must be done in total coherence with the local market and if necessary with the help of a professional.
Why is it important to do a rent estimate
A rent estimate is an absolutely essential starting point. This is done for both short-term and long-term rentals. The principle remains the same, i.e. to fix a rate in adequacy with the competition and the local market.
The rental estimate has therefore an important role for several reasons. But first of all, it is important to know that it is determined according to a set of criteria. These will have a considerable impact and thus 2 identical residences, located in the same district but with different services will not be rented in the same way.
Estimating a rental requires in-depth knowledge by considering the intrinsic characteristics of the property. It is a way to compare them and, above all, to make a much more profitable investment. Therefore, the estimation of an apartment rental is absolutely necessary in this kind of case.
You can of course make this comparison yourself by determining the other accommodations in the vicinity of yours and of course with the same services. If necessary, you will be able to revise the rent upwards if you consider that this increase remains justified.
But in any case, the rental estimate is based on a precise analysis. With a certain expertise, hence the need to direct you towards a seasoned professional. Moreover, if it is your own property that you are renting, you will naturally tend to overestimate it.
The importance of having an outside opinion for the rental estimate of an apartment
There is no need to go anywhere to get what you want, because an online rental estimate is still possible today. Many agencies are specialized in this field and they will give you an objective view of the quality of your apartment and the amount of rent. Thus, the estimate of an apartment rent will be totally coherent so that you can easily find future tenants. Don't forget to set a coherent price either, because an amount that is too low risks making you lose in rental profitability.
You can always use the rent reference indices which are readjusted every year anyway. But the estimation of rents should not be neglected and it is always important to receive sound advice. With the estimation of a consistent rental price, your return will be greatly improved.
How do I get a rental income estimate?
To estimate a rental income, turning to rental management is an excellent choice on your part. Otherwise, you must take the time to consider all the elements specific to your house or apartment. These different characteristics will have a direct influence on the final amount.
First of all, it is impossible to estimate the rent of an apartment without taking into account the environment in which it is located. It is a parameter of capital importance by taking into account the attractiveness of the commune, the public transport in the vicinity, the infrastructures, the schools and obviously the parks of activity.
Secondly, it is necessary to consider the technical characteristics of your property. For example, you consider the orientation of the property, whether you have double glazing, the general quality of the insulation, whether you have additional services such as the presence of an exterior etc.
To estimate the rental of an apartment, it will be necessary to consider the surface of the apartment. Let's take the case of a property entering the device of the Pinel law, the price per square meter varies between 14 and 16, 70 € in the French capital. But in other cities with more than 250,000 inhabitants, the price per square meter does not exceed 10 euros. It is important to know that the evaluation of the rent must take into account the rent control which is defined by law and revised annually.
It is therefore necessary to be aware of the zone in which your property is located.
Why is the law on rent control important ?
Many excesses have been observed in the real estate market. To put an end to this, the government has decided to implement a law concerning rent control. It currently concerns 38 French agglomerations with a high demand for rentals. So if this is the first time you rent your apartment or house, you have some leeway to define the amount of the rent. But if you change tenants, there are some very specific rules.
For the new tenant, it is necessary to follow the evolution of the rent reference index published each year by the INSEE. Therefore, you must systematically refer to the local market price by having excellent knowledge of real estate data.
Thanks to an objective analysis, you will be able to correctly determine the amount of the rent. But in any case, you should not neglect the location of your property, its quality and the facilities provided. In addition, energy diagnostics play an increasingly important role in the final rent result.
Estimating the rent for a furnished property
Generally, if you have a furnished apartment, it will be perceived as more upscale compared to an empty apartment. Therefore, the rent estimate will be more consequent. But from the start, you will have to choose the layout of your property in order to know if it is intended for transient tenants like on Airbnb, for students or for families.
The main advantage of a furnished rental is that the monthly price will be more important than a property rented empty. But be aware that the rental vacancy remains more important, because tenants usually stay only for a short time. Again, this is a strategy that requires an investment on your part, and you will obviously have to deal with realistic accounting.
Why trust UpperKey to estimate your real estate income?
If you're new to UpperKey, it's in your best interest to get all the information you need. From the moment you own an apartment or house, whether in the French market or elsewhere, UpperKey will help you get started by maximizing your investment.
Every detail will be treated with the utmost care on any type of property. An estimate of your income will be performed at the outset in relation to your property. Then, you can decide to entrust the agency with the management of your property to have a real peace of mind. You no longer have to worry about finding a tenant, setting the rent, organizing visits or managing these different requests. For you, it is a real peace of mind, while having the guarantee to receive your income regularly.
How to revise your rent ?
When you signed the lease, you determined the exact amount of the rent. However, you should know that it is possible to include a specific clause to review the amount once a year. Moreover, this revision is perfectly possible as long as the rental period is between three and six years.
As a lessor, you will have to refer to the rent revision index. These results are published quarterly by the INSEE. All you have to do is take this index and multiply it by the surface area of your property.
Of course, you cannot increase the rent without informing your tenant. In addition, you must provide supporting documents to accompany this procedure.