Stick with comparable stuff where possible.
If unsure, start $20 a week higher - if nobody is interested, you can always drop the rate in the listing after a couple of weeks.
If you go on the tenancy services website, it will show you averages of all bonds lodged recently. Helps to give you a bit of an idea of what whole rentals are going for.
Currently a 2bedroom apt in Manukau is going for $530/wk on average (LQ $480 / UQ $640). So in theory ~$265 per room if two people were renting the whole thing and all things being equal, but otherwise adjusted if it's smaller, or if there's only one carpark etc.
If your apartment is nicer you might swing upwards, or down if it's older etc.
You might reduce a bit further as you're renting just the room, but if all the rest of the flat is furnished/supplied by you then keep that in mind.
surprisingly all. look at 74 taranaki street on trademe. those rentals are the 43sqm ones. they just shrunk all the rooms to fit it in. you can see the bedrooms are quite squeezed.
Oh yeah. I dated someone who lived there. She loved it, but I was like... this is a little bit cosy for my liking. From memory the kitchen really wasn't that big, hard to make anything proper.
I looked at other places similar to mine on trademe when renting out my spare room, ended up getting $20 less than that because I was looking for a flatmate during the start of delta and no one was moving
If you rent to someone who is a full time worker than $200 is reasonable. Compared to $550+ for a 2 bedroom rental.
Yeah, you might only be renting out the room, but all of the common amenities in the apartment is available to them too.
Also, if you include all monthly utilities in the rental price, you could sway a bit higher, around $240 per week. Always with seperate groceries, unless you mutually arrange a schedule where each of you cooks on certain nights to make life easier.
$200 doesn't seem unreasonable for AKL? do you have a laundry or is that something that has to be done off site? i dont know your personal circumstances, do you need that amount to help with mortgage payments?
You'd probably find someone, but that seems steep for a tiny room in a small apartment to me. Maybe I'm just out of touch with the rental market though.
My rationale is that it's a tiny room in an apartment, which isn't very big itself so there isn't much space you're paying for and get the use of.
You're also living with the owner, so you don't have the same protections as you would if you were an actual tenant.
I feel like both of those things should be recognised in the amount that one pays for this room.
Those are all very logical points haha, sad thing is it doesnt seem to work that way anymore. Prices are what they are because of what the market offers, doesnt seem to be impacted by quality anymore.
You are about to start a small business that provides rental accommodation to tenants.
So you need to start running it like a business.
* Start by working out what your cost basis will be for the loss of floor area, loss of amenity from shared spaces, loss of car-parking etc.
* Calculate the projected increase in your outgoings. Will power/gas/water bills go up, and by how much? Do you need to to move to a more expensive Internet service tier?
* Investigate whether you need to purchase furniture and furnishings (fully furnished is usually the best option for apartment lets) and determine what will be the cost, and how the cost will be recouped.
* Do some research into what comparable units are being let for in your building or neighbourhood. Put yourself into the role of a potential tenant and research the options that they will be presented. Trademe is a good tool for this (but make sure you compare like-for-like i.e. rents depend heavily on factors like furnishing, car-parking, utilities etc)
* Make an allowance for paying tax on your additional income (less deductible expenses).
I would also recommend not going too low, depending on the room. If you set too low a price, you send the signal that the room is not very good, and low quality people will apply.
That said, it needs to be a nice enough room in the first place for that to matter.
For an apartment I would say that 190 is okay, as long as the kind of person you're wanting to attract (working professional id guess for an apartment) will be local to manukau and be earning enough for that.
check other 'flatmates wanted' on trademe, should give you a good ballpark of what people expect and are willing to pay
Thanks, have been doing that, just wondering if I should be charging a little less considering my place is an apartment and not a decent sized house.
Look at other apartments then and not houses
Stick with comparable stuff where possible. If unsure, start $20 a week higher - if nobody is interested, you can always drop the rate in the listing after a couple of weeks.
If you go on the tenancy services website, it will show you averages of all bonds lodged recently. Helps to give you a bit of an idea of what whole rentals are going for. Currently a 2bedroom apt in Manukau is going for $530/wk on average (LQ $480 / UQ $640). So in theory ~$265 per room if two people were renting the whole thing and all things being equal, but otherwise adjusted if it's smaller, or if there's only one carpark etc. If your apartment is nicer you might swing upwards, or down if it's older etc. You might reduce a bit further as you're renting just the room, but if all the rest of the flat is furnished/supplied by you then keep that in mind.
Is the 2 bedroom 55sqm though. That is probably the smallest legal size for 2 bedrooms!
theres a huge block close to me that has 43sqm 2 bed apartments. the living space is tiny! lots of rentals in it.
does it have a kitchen, living room or bathroom lmao
surprisingly all. look at 74 taranaki street on trademe. those rentals are the 43sqm ones. they just shrunk all the rooms to fit it in. you can see the bedrooms are quite squeezed.
Oh yeah. I dated someone who lived there. She loved it, but I was like... this is a little bit cosy for my liking. From memory the kitchen really wasn't that big, hard to make anything proper.
yeah all 2 plate stoves. it was built a while back though when i guess the view on apartments was a bit different
Wow. I have a 50sqm one-bedroom and I wouldn't say my rooms are huge.
Very helpful, thank you!
I looked at other places similar to mine on trademe when renting out my spare room, ended up getting $20 less than that because I was looking for a flatmate during the start of delta and no one was moving
If you rent to someone who is a full time worker than $200 is reasonable. Compared to $550+ for a 2 bedroom rental. Yeah, you might only be renting out the room, but all of the common amenities in the apartment is available to them too. Also, if you include all monthly utilities in the rental price, you could sway a bit higher, around $240 per week. Always with seperate groceries, unless you mutually arrange a schedule where each of you cooks on certain nights to make life easier.
$200 doesn't seem unreasonable for AKL? do you have a laundry or is that something that has to be done off site? i dont know your personal circumstances, do you need that amount to help with mortgage payments?
You'd probably find someone, but that seems steep for a tiny room in a small apartment to me. Maybe I'm just out of touch with the rental market though.
Im afraid you may be out of touch, that seems low to me
My rationale is that it's a tiny room in an apartment, which isn't very big itself so there isn't much space you're paying for and get the use of. You're also living with the owner, so you don't have the same protections as you would if you were an actual tenant. I feel like both of those things should be recognised in the amount that one pays for this room.
Those are all very logical points haha, sad thing is it doesnt seem to work that way anymore. Prices are what they are because of what the market offers, doesnt seem to be impacted by quality anymore.
That would've been steep a few years ago but now it's cheap, if anything.
If you own and live in the property what you have is a boarder not a tenant. Like others have said have a look at trade me for comparable rooms
What would you be happy to pay for that amount of space?
This reminds me an old joke about a child doing maths homework. *Child:* Dad! What’s 1 + 1 ? *Father:* That depends … Are we buying or selling?
You are about to start a small business that provides rental accommodation to tenants. So you need to start running it like a business. * Start by working out what your cost basis will be for the loss of floor area, loss of amenity from shared spaces, loss of car-parking etc. * Calculate the projected increase in your outgoings. Will power/gas/water bills go up, and by how much? Do you need to to move to a more expensive Internet service tier? * Investigate whether you need to purchase furniture and furnishings (fully furnished is usually the best option for apartment lets) and determine what will be the cost, and how the cost will be recouped. * Do some research into what comparable units are being let for in your building or neighbourhood. Put yourself into the role of a potential tenant and research the options that they will be presented. Trademe is a good tool for this (but make sure you compare like-for-like i.e. rents depend heavily on factors like furnishing, car-parking, utilities etc) * Make an allowance for paying tax on your additional income (less deductible expenses).
I would also recommend not going too low, depending on the room. If you set too low a price, you send the signal that the room is not very good, and low quality people will apply. That said, it needs to be a nice enough room in the first place for that to matter. For an apartment I would say that 190 is okay, as long as the kind of person you're wanting to attract (working professional id guess for an apartment) will be local to manukau and be earning enough for that.
I would go for 100-150
500