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If your house rent just got increased or you are on the market for a new apartment. You should read this. While rent prices are fixed based on the landlords or the developer’s discretion there are determinants that affect house rent decisions and they change over time.
So picking Lagos as a sample size, how do you determine if you are being overcharged for rent?
Current Rent Rate of the Apartment
If your rent just got increased, one of the ways you can figure out where you stand is talking to your neighbours to know how much they got. Compare your rent with other buildings in the neighbourhood and see how you can negotiate with the Landlord.
If you are just searching, one thing you should never neglect when inspecting a house or an apartment you are interested in is not talking to the tenant occupying the premises. Once you have been introduced by the agent to a co-tenant, establish a conversation about the environment and building, familiarize yourself with the charges paid.
If they can’t divulge their rent due to personal discretion, ask people in the neighbourhood. This really helps to know if you are being overcharged or at least help you make informed decisions.
Location
We could say this is the oldest determinant of rent as distinctions have always been made based on where you live. Still using Lagos as our sample size, there are several distinctions. We have the Island, Mainland, GRAs etc.
So where do you live or plan to; an average rent on the island falls around N1,000,000 – N6,000,000 depending on the size of the apartment. For mainland’s, rent average falls between N800,000 – N2,500,000 also depending on the size of the apartments.
The island is relatively expensive compared to the mainland as it is home to the elite of the society and has a lot of new buildings which makes them pricey.
So, what are the common things people look at in a location;
Accessibility
Infrastructure: which include electricity, good roads, water, security etc.
Market Force
The law of demand and supply is also a factor. At a time, Industrial areas used to be many people preferred location, for reasons such as living close to work, or opening a shop in a busy location.
Now, the demands for serviced apartments, houses in the estate are hot cakes in the market. If your choice location falls into that category then the chances you are paying a high rent due to the competitive market.
Unfortunately, the demand for houses is overwhelming and supplies are little to nothing due to the high cost of building and the economic situation.
If you are not enjoying the above service and your location doesn’t fall into the market hotspot then you shouldn’t be paying an out-of-pocket rent.
Condition of the Building
if you live in a well-maintained house or renting a serviced apartment you might likely be paying a little over others as this would reflect in your rent charges.
Irrespective of the location, some buildings just maintain standards, asides the architectural structure that can’t be easily altered. The interiors may benefit from steady modern fittings and features.
Source: Social PropertyPro (14/07/2021)