Is This Rental Reasonable?

[chalknduster 0]

I will be renting out my common room and utilities room to my friend n her family (she n her hubby + 2 teenagers + a toddler) in July.

$1,400 for two rooms, include utlities bills and fully furnished.

Is this amount reasonable?

They will be renting for 4 years till their BTO is ready in 2017.

So during these 4 years, how often and how much can I ask for increasement? (this is my first time renting out)

This is a 3room flat (40 years old flat) and is at prime area - Bukit Merah View.

1 bus stop away from Tiong Bahru Plaza/MRT or 7 mins walk only from my house. 8 mins to Redhill bus interchange.

I will be doing the reno for my whole house soon, so they will be staying in a brand new furnishing.

Edited February 10, 2013 by chalknduster

[May_dream1 14]

Rental is depending on how close you are with your friend. Friendship have no value.... If they are staying with you as we'll, then freedom also have no value. But if you meant market price, then I think whether you living there or not. If you live there, then 1400 seem reasonable. But if they have whole flat, then 1400 is too cheap.

[May_dream1 14]

If you write up agreement, then based on agreement is when you can increase the rental. Most probably yearly basis.

[Maria 0]

Rental is depending on how close you are with your friend. Friendship have no value.... If they are staying with you as we'll, then freedom also have no value. But if you meant market price, then I think whether you living there or not. If you live there, then 1400 seem reasonable. But if they have whole flat, then 1400 is too cheap.

Agree 1400 is too cheap for whole flat if you are not living there. You may wish to charge separately for utilities.

[natural9 0]

I will be renting out my common room and utilities room to my friend n her family (she n her hubby + 2 teenagers + a toddler) in July.

$1,400 for two rooms, include utlities bills and fully furnished.

Is this amount reasonable?

They will be renting for 4 years till their BTO is ready in 2017.

So during these 4 years, how often and how much can I ask for increasement? (this is my first time renting out)

This is a 3room flat (40 years old flat) and is at prime area - Bukit Merah View.

1 bus stop away from Tiong Bahru Plaza/MRT or 7 mins walk only from my house. 8 mins to Redhill bus interchange.

I will be doing the reno for my whole house soon, so they will be staying in a brand new furnishing.

You're almost renting the whole flat (except the master room) to your friend and her family for 4 years. They ll treat it like their house...

If you are staying there, you have no privacy, and you have to endure their living habits for 4 years, did you consider all these?

1400 for that prime location is a bit below market price... my advice is utlities bills should be charge as used.

[May_dream1 14]

master bedroom usually 900-1000 for good location, abt 700-900 for not so good location. common room around 600-800 but utility room less than 500. So charging 1400 for common room + utility room is reasonable. And renting rooms usually incl utilities unless have aircon. this is provided you are living there.

If you are not living there but just lock the master bedroom (might be illegal, have to know more details to know) then would considered as renting out the whole flat then 1400 might be a bit below market price.