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To determine the renting rate, you need to make some effort. It’s something that everyone is concerned about in Bahrain, especially if you are an expat, whether for work or studies.
Sometimes, people could take advantage of you because you don’t know how to calculate the renting rate in Bahrain. IF you are searching for an apartment for rent in Bahrain, a shop for rent in Bahrain, or any real estate in Bahrain, you need to read this article to know how you can estimate the renting price and don’t let anyone deceive you.
You might have a property, and you want to invest in it by renting it. You also need to know how to estimate the renting rates and determine the annual increase in renting prices. That’s because you don’t lose your capital or put a price that could be so high to attract people to pay for.
In this article, we will review all factors and points to help you estimate the price of renting by calculating the average between the expected value in the real estate market and your profits. You are going to know what people need to get their dream home.
Factors of Estimating the Renting Rates:
1- Compare the renting rates in Bahrain
- First, you have to look at all available apartments for rent that have similar space and are located in the same area.
- Ask the security guard of the real estate to let you know if there are any apartments available for rent, and ask him all the details you need or consumers need when searching for a new home.
- Browse all websites that offer renting an apartment and pay attention to details like space and the number of rooms. Then compare the full options.
- Take into consideration the material used to design the home. The apartments have the same space, but the design materials are different, fancy, or low.
2- Know More About the Location
- The location is a critical factor when pricing. The apartments’ rates vary according to their place, a luxury district, or the middle class.
- You need to know the type of the building if this real estate is old or recently structured.
- Have a look at the service next to the real estate. Some districts lack many essential services that residents have to go away just for buying something.
- You need to consider all these points when comparing different options before paying any money or putting a price on the internet for renting your property.
3- Know Everything Related to This Apartment
- Know how many rooms of the apartments you need but be careful; more rooms do not mean more space.
- You have to determine the whole space of the real estate and know how this space is divided. Some apartments have more rooms with small spaces. It might not work for you.
- Not just that, the perfect design will allow people to have all privacy, and some do not offer this option. It would be best if you determined your priorities.
4- The view and floor of the apartments
- The view of the residential units is always an essential factor of its renting price in Bahrain. Often the ground floor has the lower price.
- The more floor will be, the more price will cost you. But the first and second could be affordable for you.
- The higher floors get its residents to see the full view, and you are not going to the noise coming from the streets.
- But when there is no elevator, the higher floors will be lower than others.
- The view of the garden, lagoon, and green landscapes is fundamental to putting a fair price. Suppose you need an apartment overlooking such a view, except to pay more money. Or if you have this apartment and need to rent it, you are lucky as it should be higher.
5- Features of apartments can determine the prices
- It would help determine the advantage edge of your apartments that will make your deal deserve and attract more customers. And if you are the customer, you have to decide what is the best option you are looking for.
- The tasty views over the sea or marvelous gardens will make the apartments higher.
- Some apartments feature more than that, for instance, spacious spaces, a high ceiling that will make you feel more comfortable, a great design, or high-quality furniture.
- If you have such features, you have to post them clearly on your advertisements to allow your apartments to get noticed.
6- Negotiate About Your Deals to Get the Best Price
- There is other information you need to know before paying any money, like the maintenance fees.
- Also, you need to know if you have to pay utility bills or the owner of the properties will make it for you.
- If you have an apartment, you will offer it for rent, and there are still installments; you have to put a reasonable rate to cover this payment.
7- Know More About the Annual Increase of the Renting Rate
- The new rent benefit act has already determined the annual average real estate renting rate, which will not negatively affect the lessor and lessee.
- Generally speaking, prices constantly change because of many reasons, inflation, and so on.
- It’s scheduled that the renting prices will increase by 5% per year.
- Otherwise, the commercial and business buildings will surge by 7%.
8- How to calculate the annual renting increase
- You can calculate the renting increase by multiplying the current rent rate value by 5% – in case it’s residential property- and then dividing the value by 100. After that, you can add the number you get to the current renting rate. Finally, it’s the value you have to buy from the owner, or if you are the owner, this is the amount you will get from the customer.
Follow the previous steps and compare them appropriately to estimate the renting rates in Bahrain. We hope you find this helpful and contact us if you have any requirements.
