# How to Calculate Rental Price Per Square Foot

Listed below are some of the main factors that are considered when determining the average rent per square foot. These include the Common area factor, Rentable square feet, Yield, and Average monthly rent. You can use these calculations to determine how much to charge for a particular rental property.

### Rentable square footage

The number of square feet in a property is a key factor in determining a rental price. There are a few things to keep in mind when calculating this number. First of all, you should know the market value of your property. This will help you figure out the average price per square foot that your property will be able to fetch. In addition to that, you should consider what amenities or characteristics your renters are looking for in a home. Once you know this, you can use the formula below to determine a price range.

Another important factor is the amount of space shared between units. If you’re renting a multi-unit building, you should take into account the shared spaces. Common areas can add up to as much as 15% of the square footage of the building. If your building shares public restrooms with other units, you should also consider the cost of the shared spaces.

To calculate rental price per square foot, divide the total rental amount by the number of square feet in the unit. The result will be the rental price per square foot for the year or month. Once you know the total square footage, you can divide the monthly rental amount by 12 to find the monthly rental amount.

For example, a one-bedroom apartment with a floor area of 2,000 square feet would rent for \$48,000 per year. The same space with two bedrooms would rent for \$4,000 a month. In the same way, a two-bedroom apartment in Cimarron Hills, Colorado, would rent for \$3,333 to \$4,000.

### Yield

In order to calculate the rental price per square foot yield, you first need to know how many square feet your property has. You can do this using a calculator, but it is important to remember that you should use like-for-like comparables. Otherwise, your calculations may not be very accurate.

Secondly, you should know the cost of maintenance. This will vary depending on the type of investment property you have. If you have a property with high maintenance costs, this can reduce the rental yield. Also, you should know whether your property has service charges or ground rent. Whether your property is freestanding or on a lease, these fees can affect the rental price.

A yield on cost is a common calculation used by commercial real estate professionals to calculate the value of a property. It measures the return on investment on a value-add project or a real estate development. It can also be used to calculate development spread, which is the difference between the yield on cost and the market-based cap rate. The development spread tells investors how much additional return they can expect after investing in a property.

### Average monthly rent

If you’re renting an apartment, you need to calculate the average monthly rent per square foot. You do this by dividing the rent by the square footage of the apartment. You can also multiply the rental amount by 12 months to get the annual rent. This method is useful when renting retail or office space, but not for industrial buildings.

A reasonable rent for a multifamily property ranges from 0.8% to 1% of the property’s market value. This figure will vary based on the rental market, the square footage of the apartment, and the type of property. For example, homes of 2,000 square feet in Cimarron Hills, Colorado, are listed for between \$395,000 and \$565,000, but similar homes are renting for \$1,900 to \$2,700 per month. You may find that calculating rent by percents is more accurate.

### Zillow rental price per square foot

Rent per square foot estimates from Zillow are not always 100% accurate. Zillow bases its calculations on averages in the neighborhood, which is not always accurate, and on data from similar properties in the area. Also, Zillow does not account for improvements or property tax assessments, which can cause the estimate to be inaccurate. Even though Zillow uses a computer algorithm to create the price estimates, there is still a chance that the numbers could be off.

Zillow’s Zestimate is a computerized estimate based on comparable sales in the area. It’s not always accurate, but it does give a ballpark figure that you can work with. It’s also important to note that these estimates can be updated regularly depending on market conditions.

Zillow publishes ZHVI for single-family residences, townhouses, condos, and five-bedroom and higher. It’s calculated by dividing the estimated home value for a region by the square footage of the property. Its user guide has instructions on how to properly cite this data.

A rule of thumb calculation is helpful for general estimations, but for more accurate results, a detailed study of rental prices in your local area is necessary. The comparison of your property to other nearby properties will help prospective tenants make an educated decision about how to price your rental property. In addition, Zillow makes it easy to browse rental properties in your area, allowing tenants to input their criteria and find the best rental for their needs.