Unlocking the Value: How Good School Districts Affect Rent

The location of the rental property can dramatically affect the price. In fact, it can influence the type of tenants a property will attract.

In the case of a city, for instance, its most fashionable neighborhood typically comes at high-end apartments. They are usually near fun eateries and shops. They also tend to have amenities available on site that benefit the entire community.

Impact of Location on Rent

The location of a property’s city or a suburb may affect the rent price. Certain areas are more sought-after in comparison to others and may increase rent potential for a property.

The presence of a major industry that is forming or leaving a particular region may also contribute to or devalue the worth of a property. A city with a strong economic activity will generally have more rental prices than a city with poor economic growth.

Neighborhood attributes aren’t so easy to gauge as the structural aspects, but they could have an impact on home rental prices. For instance, those neighborhoods which have had a history of natural catastrophes could have higher insurance premiums as compared to those that have little or none.

In addition, safety in the neighborhood is an important consideration to renters in general. A history of violence and crime can impact rental costs.

Urban vs. Suburban Rental Prices

The choice of renting in a city or suburbs could be determined by numerous factors. But the primary factor is usually price. In urban areas, you will typically pay higher rates of rental, due to the fact that space is a premium in urban areas that are heavily populated, and more people are interested in renting there.

Suburban rental properties are generally less expensive, and can offer a variety of amenities to those who are budget conscious. As an example, families that can’t afford to purchase the home they want often get a house with a single family located in the suburbs. They can enjoy plenty of room and privacy for their kids.

While the pandemic was in full swing the suburban rents grew faster than the core city. While rent reductions have become more pronounced within core cities, difference between suburban and urban rents has narrowed.

Neighborhood Desirability in Rentals

The area in which a rental property is located can influence the amount of rent you are able to charge. Some macro factors include the economy’s current conditions as well as the local population.

An excellent school district is yet another element that may impact the value of a rental. If the tenant does not have kids, being located in a good school district could increase the value of the home in the event of a time when they need to sell.

The general belief is that rentals hurt neighboring home prices, however Rohe states that there’s no enough evidence to be able to say for certain. But, he adds that homeowners sometimes have valid grounds to be worried about an abundance of rental properties within a particular neighborhood. There is a belief that rental properties don’t help a neighborhood and that they decrease the values of nearby homes.

City Size and Rental Costs

The most significant factor when it comes to determining the cost of renting an apartment is its location. In the words of an old adage, “location, location, location.” The more close to supermarkets, public transportation or restaurants the rental is, the higher priced it’s likely to cost.

The rental market is also different between cities and even neighborhoods within cities as well, which is why a property owner needs to do their research and know what is driving the price before listing their home. This could involve local economic conditions, rates for municipal services as well as seasonality. In cities with excessive consumer price indexes for example, it may be better off owning an city garden apartment than to rent. In other locations, however this isn’t the case.

Transportation Proximity and Rent

In the city, close proximity to public transit could significantly impact property values–and, by extension, rent numbers. But that’s only true in the case of the appropriate type of transportation. In other words, it’s the one thing to request to pay a premium for a property that sits near a Boston MBTA station and quite another to demand the same rate for an apartment that overlooks a noisy freeway on-ramp.

To study the effect of location on rental costs the study makes use of geostatistical techniques to calculate Hedonic models of the typical housing. These are then used to produce an isovalue map that shows the major and minor effects according to zone. The results show that ground transport proximity is a significant component in determining rent prices in addition to the fact that these impacts are stronger in cities with subway lines than with no subway networks.