Friday 27 December 2013

5 Reasons that decides Property Rents

Outline: Though many factors determine the rent of a place, however, there are a few key factors that play a very important role. These factors are based on your personal ability to pay for the rent as well as the various features and facilities that come along with it and the market situation.
5 Reasons that decides Property Rents

With the ever-growing expenses in India, renting out a property makes it one of the best options for a person to get an income especially when they have an extra place available for lease. However, it can be a very tough deal for the people who take the place; it can be a very big hole in their pockets. The reasons for rising rents in India can be a very big challenge for people who cannot afford to buy a place of their own.
Due to the current economic situation, there are many challenges that are faced to meet the day-to-day expenses due to the increase in the cost of living. A person has to take into consideration a lot of things before they can finalize a deal or choose a place to stay. Though there are many factors that determine the overall cost of the rent that you would have to pay, however, the 5 reasons for deciding rent are given below.
The location and the size of a property
The location of the property plays a very important role in the determination of the rent that a person would have to pay. For example, the location of your area is at a prime location, and then you can get a higher rent, in comparison to a property of the same value which is located on a road that is of a prime location. This is because a prime location fetches more crowds and options for people, however not many people prefer a house that is very inside.
Another aspect that plays a role in the rental value is the size of the place. The size of the property depends on the square feet area of the house. The bigger the property the more expensive it is for rent and it can be an even more challenging factor depending on where the property is placed.
Accessibility and available
The accessibility of the property is equally important. When you choose a property for rent that is easily accessible it makes it easier for a person to stay. This would also include the nearby shops, stores, food joints, medical help, transportation facilities, educational facilities, etc. These play a very important role because this is what determines whether the place is worth paying.
Amenities or facilities that come along with the property
It is also important to check and see what facilities are being provided along with the property. In this one of the main factors is to check to see if there is enough security around. With today's increasing crime rate as well as various kinds of threats, the place you choose must be safe enough for you as well as your loved ones.
Your personal budget and financial condition
A budget is very important and can help you decide on the kind of property you would want. Many times, due to a low budget we have to settle for something that is not even close to what we are looking at. Due to the current market situation as well as the economy, budgeting our monthly expenses is one of the main things.
When you are choosing a place for rent, this is also one of the main factors that play in a person's mind. Before finalizing a place, you need to ask yourself if you can handle the rent or not. It is also essential when you are taking a place for a long time as the rent would go up by a certain percentage every year until the end of the contract.
Various expenses that you would incur
Apart from the budget, you also need to keep in mind other expenses like the various bills that you would need to pay which include the electricity bills, telephone bills, personal expenses, etc.
If you are going through a broker, you would also need to find out the commission that they would take as this differs from agent to agent. You also need to find out the advance that would be needed by the landlord of the property as that also varies depending on the requirements and terms and conditions of the landlord.
This is also based on the present going rates of where the place is located. Some people may ask for a flat amount while some would want the rent amount for a certain number of months like 10 months to one-year advance rent as a deposit which is refundable.
The above-mentioned factors are just a few of the various other factors that results in rising rents in India.
In conclusion, the decision-making process involved in renting a property is influenced by various factors, each playing a significant role in determining the rent. From the location and size of the property to the amenities provided and personal financial considerations, tenants must carefully weigh their options to ensure a suitable living arrangement within their means.

The escalating costs of living in India underscore the importance of understanding these factors and their impact on rental prices. Accessibility, security, and additional expenses such as utilities and commissions further contribute to the overall rental expenses, necessitating thorough evaluation before finalizing any rental agreement.

Moreover, the expertise of real estate professionals can provide valuable insights and guidance throughout the rental process. By considering expert advice and diligently assessing all relevant factors, individuals can make informed decisions that align with their budgetary constraints and lifestyle preferences.

Ultimately, navigating the rental market requires a balanced approach that takes into account both practical considerations and personal preferences. With careful planning and attention to detail, tenants can secure a rental property that meets their needs and offers a comfortable living environment.

The writer of the article is an expert in providing insight and information about the real estate market. In this article, the writer has provided some basic factors that play an important role when you are deciding to take a place on rent. 

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