RENTAL
VALUE
The
rental value of property can be determined by analyzing market rental
agreements. For comparison purposes, lease agreements have to be
adjusted to a common base rent. This is usually 12 months for a
residential lease without any unusual clauses. Typical variables
affecting the rental value of a house are:
- number of
bedrooms
- car
accommodation
- availability to
public transport
- proximity to CBD
- type of suburb
- supply and
demand
- locality
- quality of
building, infrastructure, and common property.
- state of repair
- views
- whether
furnished or unfurnished.