Rental-to-sale ratio of houses

Rent-to-sale ratio is one of the important indexes to evaluate the investment value of real estate. Refers to the ratio between the rental income and the selling price of a house. In layman's terms, it is to measure the value of a house with rental income. The higher the rent-to-sale ratio, the higher the rental income, the higher the return on investment and the greater the investment value of real estate.

How to calculate the rental-to-sale ratio of houses?

To calculate the rent-to-sale ratio, we must first determine the selling price and rental income of the house. The selling price can be inquired through the housing agency or the real estate website, and the rental income can be calculated through the following steps:

Step 1: Determine the rental price of the house.

The house rental price can be determined in the following ways:

1. Please ask the local real estate agent or real estate website to know the local rental price level;

2. Check the rental price of similar local houses for reference;

3. Self-estimate according to factors such as housing area, location and decoration.

Step 2: Calculate the rental income of the house.

Housing rental income refers to monthly rental income minus housing management expenses and maintenance expenses. The specific calculation formula is as follows:

Monthly rental income-management expenses-maintenance expenses = monthly rental net income.

Step 3: Calculate the rent-to-sale ratio of the house.

The formula for calculating the rental-to-sale ratio of houses is:

Monthly rental net income × 12÷ house price = house rental-sale ratio.

For example, the price of a house is 654.38+0 million, the monthly rental income is 5,000 yuan, and the management and maintenance expenses are 2,000 yuan per month. Then the monthly rental net income of the house is 3,000 yuan, and the annual rental net income is 36,000 yuan. The rental-to-sale ratio of houses is 3.6%.

The Significance of Housing Rent-to-Sale Ratio

Rent-to-sale ratio is one of the important indexes to evaluate the investment value of real estate, which can help investors understand the return rate of housing investment and judge whether the housing is worth investing. The higher the rental-to-sale ratio of the house, the higher the return on investment of the house, and the greater the investment value of the property.

In addition, the rent-to-sale ratio can also help investors understand the local rent price level, so as to better formulate investment strategies. If the housing rent is relatively high, it means that the local housing rental price is relatively high, and investors can choose to buy a house for rent; If the rental amount of the house is relatively low, it means that the rental price of the local house is relatively low, and investors can choose to buy the house for short-term investment or sale.

How to improve the rental-to-sale ratio of houses?

To improve the rental-to-sale ratio of houses, we can start from the following aspects:

1. increase the rental income of the house: the quality and value of the house can be improved through decoration, thus increasing the rental income of the house;

2. Reduce the management cost and maintenance cost of the house: We can reduce the management cost and maintenance cost of the house by choosing suitable property management companies and maintenance companies;

3. Choose the right investment opportunity: You can choose the right investment opportunity by understanding the trend of the local real estate market, thus improving the return on investment of the house.