How much more rent over market can you charge for an HOA with a gym and pool?
If I'm looking at buying a townhome or condo and the HOA is high because there is a nice pool and nice gym. How much more rent per month are that worth to a long term renter or midterm renter? Will a tenant pay over market rents for those amenities? What percentage?
#2 Contractors Contributor
- Severna Park, MD
I wouldnt myself . I could care less about a pool . And I work construction , the last thing on my mind is going to a gym . Now if the condos had a sports bar , I would be interested
#1 All Forums Contributor
- Investor
- Virginia
Quote from @Bradley Buxton:
If I'm looking at buying a townhome or condo and the HOA is high because there is a nice pool and nice gym. How much more rent per month are that worth to a long term renter or midterm renter? Will a tenant pay over market rents for those amenities? What percentage?
not worth the amount the HOA charges to maintain it. Most people do not care about those items, some may but those who do not will not be willing to pay extra for it.
#3 All Forums Contributor
- Contractor/Investor/Consultant
- West Valley Phoenix
- 12,157
- Votes |
- 10,773
- Posts
#3 All Forums Contributor
- Contractor/Investor/Consultant
- West Valley Phoenix
Some people will want those amenities......few will be willing to pay an extra $200+ per month for it. The pool is a seasonal thing and most HOA gyms are less than desirable.
Plus the HOA can raise their fees anytime they want to. Then what are you going to do? Keep raising the rent?
Market rent is set by the comparable units in the area. If none of them have pool/gym but everything else is very comparable, then you may be able to squeeze a bit more out above market but not much. Depending on the demographic for the area, some people may be interested in the pool, but most are not going to pay much more vs not having one to access.
So basically it may make your unit more appealing... but wont raise the rent much if at all.
@Bradley Buxton
As much as you can get and someone will pay. Start high, and adjust your numbers if it doesn't rent. You will eventually find that sweet spot. It might mean over market, at market, or under market. Let Capitalism be your guide.
To answer this I would look for similar rental listings with the only difference being what you mentioned above. That would be the best way to understand the pricing difference.
Take a look a the comparable listings in the area for condos and apartments. If someone can pay a little bit for a gym membership and get what you have then they will most likely pass on your rental. Those amenities probably will only appeal to a small portion of the renters. Most renters shop by price and won't even read the ad if it is too far out of line.