To this day, we human beings have made a significant leap in science and technology. We have left our footprint not only on the surface of the earth but also on the moon. With the increased development of transportation, travelling has become easy and comfortable. People tend to move to different places in urban cities for job and education purposes. It is common to find people from various locations staying in a metropolitan city for jobs and higher education. After travelling to bigger cities, people have to choose a place to stay, and here comes the concept of rent. If you have a few rooms vacant in your house, you can use them for rent. Before moving in, you can search for room rent in Sector 31 Gurgaons and other places online.
You may ask questions regarding the increase in demand for rental rooms. The demand and the price for renting a room depend upon various factors. In addition, this room’s prices increased exponentially over time, and let’s highlight those factors.
- Amenities: In most cases, the rent of a room is determined by its location and the amenities present in the nearby areas. Here amenities include playground, parks, restaurant, market, recreation clubs, transportation facilities, etc. If the tenant is a working professional, he will look for rooms near restaurants, markets, transport facilities, and recreational clubs. On the other hand, if a student is looking for a rental room, he will choose rooms near parks, playgrounds, restaurants, and transportation facilities. This is how amenities affect the rental rates.
- Fixed rent amount: In recent years, the tenant and the house owner have signed mutual agreements through which they are legally bound. There are a few instances we see tenants create problems, like misusing the property, performing Anti-social activities, and delaying the rental period. Again we find that the house owners increase the rental value. To bypass search problems, both the parties signed mutual agreements, including a fixed rent amount throughout the tenure.
- Flexible of moving in and out: Let’s assume you are on a project for an unlimited period of 6 months and one year. For this project, you have shifted from one place to another. It will not be economical to buy a house or a flat for an unlimited time. After completion of the period, you have to return. So renting a room for the period is preferable, and after completing the project, you can leave the room. This is how the flexibility of moving in and out determines the rental market.
- Little or no maintenance cost: There is always a hidden charge or cost involved in maintaining the asset. Let’s assume you live in a bungalow. You have to pay periodic expenditures for maintaining the lawn and cleaning up the property. On the other hand, if you live in a simple flat, there is a maintenance charge for electrical fitting and other common property. So if you buy a property while shifting from one place to another, you have to bear a maintenance charge depending upon the property. But on the other hand, if you rent a room, you do not have to pay the maintenance charge, or in some instances, there is a single nominal maintenance charge.
- Absence of down payment: There is always a problem with the down payment. Let’s assume you are buying a luxurious car. When you visit a showroom, you must book the car with the lump sum amount of money as a down payment. The same thing applies when we buy a plot or a flat or a bungalow, and we must book the assets with a considerable sum of money as a down payment. The amount of down payment varies from 30% to 40% of the actual value. But if you book a room for rent, there is no obligation for a down payment and a clean cancellation policy.
- Increase in job and education opportunities: The rental room market is demand-driven. It is a demand base. Demand affects the price of the rental room. What is a demand? Demand is the crease for certain things baked by the power of purchasing. Jobs and educational opportunities are the two key factors that affect the demand for the rental room. It was observed that during the COVID-19 pandemic, the prices of the rental room decreased below the nominal level as the offices and educational institutions were closed. It is the reason for the demand for rental rooms. If there is a growth in job opportunities for the rental rooms, the price for the rental room will also increase similarly; if the tendency to pursue higher education increases, demand for students to rent rooms will also increase.
- Other factors: Few other factors affect the market of the rental business. The utility cost decreases in the case of a rental room. If two people share a single room, the electricity bill is split between the two reducing the utility cost. If few people share a room, then the utility cost for each will decrease exponentially. There is little financial investment in the rental business. We can easily rent a room for ourselves; apart from this, we can rent furniture and other utilities at a low cost. There is another problem regarding the valuation of a property. The valuation of the property may fluctuate depending upon the location. So if the house is located not in a prime location in that case, then the value will decrease over time. In this case, a scenario denting the rooms will be the best option as it will provide a stable cash flow.
It can be concluded that rental rooms depend upon the above-written factors. Starting from the availability of amenities options for a fixed rent, flexibility of moving in and moving out to other benefits like the absence of down payment and little or no maintenance cost. We can look for a single room for rent in Sector 31 Gurgaon and other places through the internet. Few private firms help us in search of a rental room like Settl. To know more, visit their website.