Landlords
What Is the Rent in Your Area? How Market Rent Is Established
Pricing your home below or above the market both cost you. See the comparable rent range by neighbourhood and number of rooms.
Market rent is the reasonable figure a property reaches when compared with others of similar character. Neither the highest asking price on the listing sites nor the tenancy your neighbour signed five years ago is the benchmark; the benchmark is what similar homes in the same neighbourhood have actually let for recently.
Why the median rather than the average?
A handful of wildly priced listings pulls the average up and creates a picture of a market that does not exist. The median shows the rent at the midpoint of the range and is unaffected by such outliers. The table below gives the lower and upper bounds alongside the median; the real information lies in how wide that range is.
What sets the price
- Location: proximity to the metro, the shore and schools makes a serious difference even within the same neighbourhood.
- The age of the building and the heating system: flats with individual gas boilers stand out markedly.
- Floor and aspect: a middle floor with a southern aspect sits closer to the upper end than a ground floor.
- Whether it is furnished, and who pays the service charge.
- Whether it sits within a managed development — parking and security feed straight into the rent.
What is taken into account in a rent determination case?
Where a tenancy has run five years and the parties cannot agree, the court sets the market figure. The expert examines the location and condition of the property, gathers comparable tenancy agreements in the area and arrives at a figure after applying an equitable discount. Strong comparable data is decisive in that process.
The ranges here are guides produced from comparable listings and agreements in the area; for a valuation specific to your property you are welcome to a free opinion from our team.
The questions we hear most
- What happens if I price above the market?
- The property stays empty for a long time. A single month's vacancy usually costs more than the extra rent would have brought in over the whole year.
- Does the market rent rise every year?
- It moves with market conditions. On existing tenancies the increase is tied to the index ceiling; on new tenancies the figure is set freely.
- Where do you get your comparable rent data?
- From agreements concluded within our own portfolio together with listings published in the area. Data from concluded agreements is more realistic than asking prices.
Where you can verify this
The information on this page is for general guidance and does not constitute legal or financial advice. The legislation may change; consult your accountant or lawyer before acting.