Enter the property value, rental yield rate, estimated expenses per month, and property management fees per month into the calculator to determine the monthly rental assessment.
Rental Assessment Formula
RA = (P * r) + E + M
Variables:
- RA is the monthly rental assessment ($)
- P is the property value ($)
- r is the rental yield rate (decimal)
- E is the estimated expenses per month ($)
- M is the property management fees per month ($)
To calculate the monthly rental assessment, multiply the property value by the rental yield rate. Then, add the estimated expenses per month and the property management fees per month to the result. This will give you the total monthly rental assessment.
What is a Rental Assessment?
A rental assessment is a process where a property’s rental value is determined. This is typically done by a real estate professional or property manager who evaluates various factors such as the property’s location, size, condition, and amenities, as well as the current market conditions and comparable rental rates in the area. The assessment helps landlords to set a competitive and fair rental price for their property.
How to Calculate Rental Assessment?
The following steps outline how to calculate the Rental Assessment.
- First, determine the property value ($).
- Next, determine the rental yield rate (decimal).
- Next, determine the estimated expenses per month ($).
- Next, determine the property management fees per month ($).
- Next, gather the formula from above = RA = (P * r) + E + M.
- Finally, calculate the Rental Assessment.
- After inserting the variables and calculating the result, check your answer with the calculator above.
Example Problem :
Use the following variables as an example problem to test your knowledge.
property value ($) = 200,000
rental yield rate (decimal) = 0.05
estimated expenses per month ($) = 500
property management fees per month ($) = 200
