Interior design ideas

6 factors influencing the real-estate renting market

February 12th, 2007

The first factor: seasonal prevalence
Splashes in demand for renting traditionally occur in September, when the business season and new academic year begin, and employees, travelers and students search for a short-term or long-term accommodation.
The second factor: tourism
Visiting of city and sightseeing is a hobby of all tourists. Therefore it is no wonder, that the offer in a segment of short-term rent is guided just by this contingent of clients and it is considered as the most profitable area of the renting market. At the height of a tourist season the price for rent can increase in two and more times. Besides, even under such price it will not be easy to find something suitable. In this case the so-known “by the day” rent (due to rather low prices and/or convenient location) becomes even more attractive for tourists.
The third factor: a site
In the market of short-term rent the apartments in the center are appreciated on the order above the apartments located in sleeping areas. Many companies working in this segment of the market are not engaged in sleeping areas apartments renting because of low demand for such areas.
The fourth factor: comfort
If the apartments of an economy class are rented with the minimal set of convenience (there can be a furniture and phone) more comfortable habitation, certainly, gets to the leaser in the repaired kind, equipped by home appliances and arranged by furniture. As to preferences of the tenant, it is necessary to note, that the presence of phone became not so important due to the cellular communication. Thus, washing machines are much more necessary.
The fifth factor: the slipping mortgage
The difficulties concerning the mortgage, dictated both by the fast rise in prices on apartments, and complexity of reception of the credit, induce people to consider rent as the powerful competitor to purchase under the hypothec credit. Really, if, for example, rent of a one-room apartment manages $350-500 (depending on area and comfort) monthly payments under the mortgage for the same apartment will reach $1000-1500 a month. Thus there is no necessity to accumulate an initial payment and to collect information for bank.
The sixth factor: competition
The number of the leased apartments increases every year. Thus owners of apartments will try to improve their quality - both due to the repair, and due to installation of home appliances. The refrigerator and the TV cease to be a necessary service minimum. The competition is to bring more advantages to the potential renters.
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