Figuring out how much rent you ought to pay for a property can be either a complicated or straightforward process, depending on your situation. When you think of it, in a fast-moving real estate market such as the one in Perth, you must analyse how strong the demand is for the place you want, look at various Perth apartments for rent, and know what you can afford and are willing to pay.
How to Calculate Your Rent
For some subsidised properties in Perth, you will be asked to fill out and return an eligibility form to ensure that you qualify for community housing and are paying the correct rent in line with the rental criteria in Perth. You will also have to provide some personal details, show your source of income, and possibly provide information regarding any assets.
You may also have to state any other sources of income you may have such as maintenance, interest on savings, and an overseas pension as part of the evidence needed by the property owners and agents to complete the eligibility paperwork.
Some housing programs in Perth may ask you to provide additional information, such as a twelve-month income statement. If you need to do this, your review letter will outline the type of evidence you will need to provide to prove you are eligible.
You will also need to sign and submit the application and offer proof of household income as per the date stipulated. Failure to do this will result in the relevant housing authorities being unable to determine if you qualify for community housing or how to calculate your rent based on your household income. If this happens, your rent may shoot up to market rates, forcing you to move to another place. This is particularly important to do when looking for the best types of rental units in Perth within your budget.
The Numbers When It Comes to Rental Income in Perth
Divide the weekly rent by seven to establish the daily rental figure. This number is multiplied by 365, the days in a year, to determine the annual rate. The figure is then divided by twelve to set the monthly rental amount.
For instance, if a property is letting for $300 per week, divide it by seven. This gives you $42.85 per day. The yearly figure will be $42.85 multiplied by 365 days, which will be $15,642.85 in annual rent. The monthly rate will be $15,642.85/12, which comes to $1,303.57.
For a more accurate assessment, consider getting a professional rental estimate. This can provide valuable insights and ensure you set competitive and realistic rental rates.
Rent Adjustments
For some properties, rent is calculated based on your household income. This means that it can decrease, increase, or remain constant depending on the changes to your employment. In the case of a rent adjustment, the rent calculation formula won’t change but the amount will go up because the household income went up. In most cases, you will receive a fifteen-day notice of any rent variation.
A rent increase can occur when your rent calculation formula is modified. Even if your household income remains constant, if the market rent rates shoot up, your rent could increase, too. In this situation, you will receive a sixty-day notice of the upcoming changes.
A rent decrease can occur with a change in rental rates or an alteration in the rent calculation formula. In most cases, a rent decrease happens because of a change in household income and will start from the date you notify your agent or landlord of the change in circumstances. Rent deductions brought on by a decline in market rents typically are made during the annual review and go into effect on the anniversary date of the agreement.
In Conclusion
Another way you can better calculate your rent in Perth is to jump online and look at the average and median rents in the areas you currently live or want to live. If you have a tight budget, this probably eliminates a centre city location as a possibility. Nonetheless, this type of research is still an excellent way to get an idea of whether the market rents being charged align with your expectations, and Soho’s got you covered with a wide range of available Perth rentals to match any lifestyle or budget.
