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Setting the right rent price for your investment rental property means more than trying to make a profit. First, be aware that estimating the rent price of an apartment is not done in a snap; it requires a clear identification of the property and the situation of the current real estate market. So take your time for the estimation process right from the start; do not rush, and you will surely be happy afterward.
In this article, we will explain why you have to estimate the rent price of your property in Paris before signing a rental contract and the risks if you do not do this rent assessment correctly. Then we will see how to calculate the rent price in Paris and the crucial factors that impact the amount of rent.
When you want to rent out your furnished apartment in Paris for the first time, you have the right to list the property at the rent you wish. But as soon as you re-rent your apartment in Paris, you must follow the rent control rules applied to all "tense areas”. A tense rental market is one where it has become difficult for most people to find a rental, mainly because the rent prices are too high.
All in all, a poorly estimated rent can cause problems later. That is why it is mandatory to evaluate the rent price correctly and reasonably before putting it on the rental market. A common mistake is to rush to calculate the rent only based on the bank loan amount and purchase price.
It is nice to get rent to pay off your mortgage, but you still have to look at the real estate market where your rental property stands before putting it on the market. It may be counter-intuitive, but rushing may lead to a loss of rent in the future.
A high rent price may cause you to lose weeks or even months of rent revenues. While at the right rent price, you will be surprised to find a tenant in a short amount of time. Also, high rent amounts dramatically increase the risk of non-payment.
As a rental property owner, you wish your tenants to stay as long as possible in your furnished apartment rental in Paris. But unfortunately, rent that is too high increases rental turnover, so you will have to constantly find new tenants as quickly as possible to avoid having weeks without a rental.
On the opposite, you may underestimate the rent of your apartment to find tenants quicker. However, rent prices that are too low can also be risky because future tenants might think there is a hidden scam, poor soundproofing, noise pollution, etc. Therefore, it will have the opposite effect of what you are looking for, which is to rent out your property quickly.
Therefore, correctly calculating the rent of your apartment rental before signing the lease will allow you best to secure your rental income!
If you choose to rent out your furnished rental property through a rental Real Estate agency in Paris, the agency will help you evaluate the rent you can charge for your rental. Then, thanks to experience and market expertise, the agency will give you the correct rent price.
On the other hand, if the owner wishes to lease his apartment without going through a Real Estate agency and expects to have a different opinion, many online simulators help estimate the rent value of a property. Most are free, so take advantage of them. However, these online counselors won't do the job of renting your apartment for you!
These tools generally start by asking you for information about your rental property, such as the address, surface area, heating, energetic condition, etc. They then use the database of rental properties in your vicinity to calculate an average and thus estimate how much you can charge for your rental apartment.
Many factors can impact the rent value of your rental apartment in Paris. We will only go through specific criteria here. If you want a precise estimation result, having an experienced rental Real Estate agent come on-site is always a good idea.
The location of your rental property will play a vital role in the estimation. The value of the same apartment can vary significantly from one arrondissement to another. Depending on facilities or establishments around your rental property will get more or less value. For example, a 35 m2 apartment opposite a university will rent very quickly, while a villa in that location might not rent so well.
Also, the condition of the property you want to rent out directly impacts its rent price; it is advisable to renovate your property before renting to increase your rental income. Moreover, the condition of the building and the common areas also count for apartments.
The size of your rental apartment and its exposure are equally important; a small and dark apartment has difficulty renting.
For a rental apartment located in central Paris, a factor often looked at by tenants is whether there are parking spaces nearby. Is it easy or not to park your car in Paris?
Suppose you want to rent out an atypical property. In that case, we strongly advise you to call on a Real Estate professional because they can correctly assess your property's rental price and have clients looking just for that flat. As a result, you might rent it sooner and, more importantly, at the best price by avoiding excessive rotations.