1. What is Rent Calculation?

The rent calculation estimates the appropriate rent for a property based on comparable properties in the same area, adjusted for differences in features, location, and condition.

2. How Does the Calculator Work?

The calculator uses the rent calculation formula:

Where:

• \( Comparable\ Rent \) — Rent of similar properties in the area (AUD/month)
• \( Adjustment\ Factor \) — Multiplier accounting for property differences (unitless)

Explanation: The equation adjusts comparable rents based on how the subject property differs from the comparables (better condition = higher factor, worse condition = lower factor).

3. Importance of Rent Calculation

Details: Accurate rent estimation is crucial for property investors, landlords setting competitive prices, and tenants evaluating fair market rent.

4. Using the Calculator

Tips: Enter comparable rent in AUD/month and adjustment factor (typically 0.8-1.2). All values must be valid (rent > 0, factor > 0).

5. Frequently Asked Questions (FAQ)

Q1: What is a typical adjustment factor range?
A: Factors usually range from 0.8 (worse than comparable) to 1.2 (better than comparable), with 1.0 being equivalent.

Q2: How many comparables should I use?
A: Ideally 3-5 recent comparable rentals within 1km, similar in size, age and features.

Q3: What factors affect the adjustment?
A: Property condition, location, amenities, parking, views, noise levels, and recent renovations.

Q4: How often should rent be reassessed?
A: Typically annually, or when significant market changes or property improvements occur.

Q5: Does this work for commercial properties?
A: Commercial rents often use $/sqm calculations instead, but the principle is similar with different adjustment factors.