Rent estimate: How do I estimate the rent of a rented apartment?

The rent estimate is often a step after the real estate is estimated, in order to avoid the risk of discouraging potential tenants from rent that is unsuited to the intrinsic qualities of the dwelling.

Indeed, it is essential to estimate a rent in a relevant way in relation to market prices in order not to generate subsequent vacancies that become too expensive or, on the contrary, difficulties in adjusting a rent that is too low.
Finally, the estimate is essential in order to reap the best fruits of a real estate investment.
Estimate the rent of a rental unit: why is it essential?

Estimating the rent of a rental unit is important for several reasons. It should be noted that a rent is estimated according to the very many criteria, listed below, which have a considerable impact on the amount of that same rent. In order to be at best informed about housing, to know its deepest characteristics and above all in order to be able to compare it and therefore be able to invest its money as best as possible, it is essential to have the rent of a property estimated. As you will understand, to have your rent estimated is to be able to compare it to the market prices charged on a property similar to the one you are interested in. It also makes it possible to revise a rent with full knowledge of the market.

Since the amount of rent is based on an accurate analysis of the property, it makes one wonder how the property differs positively from the others, and ultimately to be able to choose in all lucidity the one that corresponds to you best.

When renting a property, the goal is to make it profitable and the rent is almost exclusively the guarantor of this outcome. This is why it is important to have rent set precisely so as not to scare away future tenants by too high prices.
Please note that it is also not advisable to set amounts that are too low in relation to what is called rental profitability. Indeed, there is a benchmark index of rents that takes part in the annual revaluation of the rent and because of which it is very difficult to adjust rent too low to the increase.

In conclusion, having a rent estimated is not negligible, but it is all the more important to do so correctly. For this, here are some parameters and tips to take into account.

How to estimate the fair rent of a rental property?

To estimate the rental value of a property, it is necessary to comb through the elements of the apartment or house that will have a more or less strong importance on the final amount. The elements to consider are the following.

The environment is well known in the real estate world to be the first parameter to be taken into account when estimating real estate. This real estate environment includes both the attractiveness of the municipality, the infrastructure and services available nearby or even green spaces or activity parks.

Secondly, there are the technical characteristics of the rental accommodation such as the quality of the insulation, the presence of double glazing, the orientation of the property, the quality services and, although this is more subjective and less decisive, the decoration comes into play.

Obviously, the area of the property determines the price of rent, especially in large cities like Paris where space becomes a luxury product. For example, it is important to know that according to the provisions of the Pinel law, the average price per square metre in Paris ranges between 14 and 16.72 euros in Paris but does not exceed 10.00 in agglomerations with more than 250,000 inhabitants.
Rent controls have somewhat disrupted some of the rules for rent setting and revision. But this framework system has been revised and revised according to the cases and areas.

Finally, in some condominiums, security features and the presence of guards increase the rental value of a property.

Although it is essential to be aware of these parameters in order to be able to set the rent of a house or an apartment, it is necessary to apprehend them with method.
What is the method of estimating the rent of a property?

Advice to follow begins with the verification of the local real estate market and compliance with the framework thresholds set by law through the objective analysis of all the variables mentioned above.

Once the various components of the property have been scrupulously analysed, a refinement of the future rent can be achieved by consulting the market, an operation that involves requests for information from real estate agencies or information structures. housing or at the rent observatory in the agglomeration in question.

Otherwise, it is effective and often simpler (but less accurate) to refer only to real estate advertisements published on the internet or by real estate agencies. 

Setting or having rent estimated can be a very random operation, which is why individuals often wonder what to take as a reference standard, on what to base.
The Rent Control Act

In order to avoid any slippage, the law regulates such a practice, and in particular the rents of housing put on the market in 38 agglomerations collecting a high demand. When a landlord rents his home for the first time he has a wide way to fix the rent, but this is different when there is a change of tenant.

When the dwelling is therefore put back on the market the landlord has the duty to apply to the new tenant the same rent increased according to the evolution of the rent reference index published by inSEE among other things (case of rent control). To play the role of citizen of a rule of law and to be aware of the laws in force is therefore necessary in order to estimate its rent as best as possible.

Since it is strongly advised to refer to market prices, it is necessary to be aware of real estate databases which are indicators of trends in the same market. They reflect the fluctuation of prices per square metre.

Finally, the objective analysis of the parameters is intended to be the principle of the law and the request allowing any landlord to estimate the rent of the property belonging to him. But it is also the consideration of the criteria mentioned above such as its energy performance, its level of comfort, its exposure etc...

In conclusion, taking into account the situation of the property, the quality of the accommodation, taking stock of the house or apartment concerned and identifying it well remain necessary steps. Not to mention energy diagnoses whose result is decisive in determining the amount of rents that will vary greatly between a dwelling classified in category A or category F for example.

It is only by following these tips and opting for the strategies indicated that you can quickly find a tenant and make a rental investment grow.
Who to contact for the estimate of the rental value of their home?

With the internet, it is now easy to be guided during a real estate estimate. Many reliable websites are available to any individual and, in some cities, observatories exist for anyone who wants to learn about average rents.

It includes well-known sites offering free online, easy-to-access and reliable estimates as well as other service providers such as the National Housing Information Agency is also of national renown.

Even if using a real estate expert (real estate agency or notary) remains the best option, the consultation of these sites nevertheless allows to get a first idea on the practices in force around the real estate as well as an idea of the fairest estimate.

However, if estimating your own rent proves to be too complicated, expert expertise by a professional is the ideal remedy.

The expert, mandated by the owner, carries out his expertise valid for 6 months. The expert will have to examine all the elements affecting the rental value of the property, which can be a tricky operation to do by himself, and he can also help you on more technical missions such as checking plans land registry, building permits and even real estate diagnostics.