If you’ve experienced a recent hike in your rent or are currently searching for a new apartment, this information is essential. While landlords or developers typically set rent prices at their discretion, certain factors influence these decisions, and they evolve over time.
For instance, let’s take Lagos as an example. How can you ascertain whether you’re being charged an excessive amount for rent?
Current Rent Rates in the Area:
If your rent has increased, a way to gauge where you stand is by speaking to your neighbors to learn about their rent amounts. Compare your rent with other properties in the neighborhood and consider negotiating with the landlord.
If you’re in the process of searching for a place, never overlook the importance of speaking with the current tenant when inspecting a property. Once introduced by the agent to an occupant, engage in conversation about the environment and the building, familiarizing yourself with the expenses they incur.
If they are unwilling to disclose their rent due to personal reasons, seek information from others in the neighborhood. This can significantly help in determining whether you’re being overcharged or at least assist in making informed decisions.
Location:
Location has always been a significant determinant of rent. In Lagos, for instance, distinctions exist between areas like the Island and Mainland, each with varying average rent prices based on apartment size.
The Island tends to be more expensive due to housing the elite and having numerous new, pricier buildings. What do people commonly consider in a location?
– Accessibility
– Infrastructure (electricity, roads, water, security, etc.)
Market Dynamics:
The law of supply and demand also plays a role. Once, industrial areas were preferred due to proximity to work or busy commercial spaces. Now, serviced apartments and housing estates are highly sought after, driving up rent in competitive markets.
Unfortunately, high demand and limited supply, compounded by the costs of construction and economic conditions, create an overwhelming demand for houses.
Building Condition:
Living in a well-maintained or serviced apartment might mean slightly higher rent compared to others. Some buildings maintain higher standards, both in architectural structure and modern interior fittings, influencing rental charges regardless of location.
