Wikipedia:Reference desk/Archives/Humanities/2014 October 7

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October 7

Is there a formula for how much rent to charge?

Something like square root of the ratio of square feet? 50.74.3.218 (talk) 02:14, 7 October 2014 (UTC)

You have given us entirely insufficient information for anyone to provide even a remotely useful answer - though in general, unless there are legal constraints to the contrary, rents are set according to whatever the landlord considers will maximise profits. Which of course depends on what is being rented where, and what similar property is currently being rented out at. And by the way, a ratio is a relationship between two numbers of the same kind - the square root of a number (for example an area, like square feet) is a number, not two numbers. AndyTheGrump (talk) 02:24, 7 October 2014 (UTC)

I should've said "all other things being equal." The question should've been "how to use the unconstrained market rent of apartment(s) of similar quality but different sizes and the ratio of their square footages to yours to estimate the ratio of market rents (and therefore a good starting point for yours)". Since there's a Laffer curve and a formula to turn the age of an elephant to it's weight then there must be some startling accurate formula (given the fickleness of prices) that some sociologist or ecomomist found with a table that conveniently provides words like ultraluxury, bare-bones and numbers so you have an idea of what constant to use. 50.74.3.218 (talk) 03:14, 7 October 2014 (UTC)

(Since you geolocate to Manhattan), the NYC Rent Guidelines Board's FAQ might (or might not) have link(s) that eventually lead to something resembling helpful info.  —71.20.250.51 (talk) 02:37, 7 October 2014 (UTC)

• You have to charge enough rent to pay for actual expenses like superintendent, heat, and maintenance, plus potential ones (insurance, liability) and to make a sufficient profit on top without driving your tenants to cheaper accommodations. Rent control doesn't apply to commercial space or to new buildings as such. Rent per square foot allows renters to assess cost, it is not a formula for what you should charge. You are the one who has to define for yourself what a sufficient profit is. I agree, a more specific question can better be answered. μηδείς (talk) 03:19, 7 October 2014 (UTC)

• • I added a more specific question. Though first you have to see if your sufficient profit is realistic, possibly adjust your expectations of sufficient to the market (or leave if you really would rather do something else), hence a starting point would be nice. 50.74.3.218 (talk) 03:34, 7 October 2014 (UTC)

At least here in Germany, rent are usually compared per square meter of usable space (which has a formal definition that may include parts of a balcony, but exclude parts of storage space, but in general conforms reasonably well to the plain area of the living spaces). This "base rent" is subject to some forms of regulation, especially in highly competitive markets. Landlords can also pass on additional costs (insurance, garbage service, electricity for common rooms, elevator costs, etc.), but they have to provide full accounting for that part of the rent. --Stephan Schulz (talk) 12:28, 7 October 2014 (UTC)

This article has instructions for determining how much rent to charge: http://www.biggerpockets.com/rei/fair-market-rent/ ZMBrak (talk) 15:37, 7 October 2014 (UTC)

How would you factor in a view of the beach vs. one of your building's garbage cans? Clarityfiend (talk) 15:44, 8 October 2014 (UTC)

Who are "you" (i.e., seller or buyer?) I would look at similar listings. Compare like apartment with airshaft view to beachfront view to like apartment by price in the newspaper or on line. This is shopping 101. μηδείς (talk) 21:01, 8 October 2014 (UTC)

The OP specifically asked for a formula. Clarityfiend (talk) 00:25, 9 October 2014 (UTC)

What makes you think there is one? Rents, like any other prices, are going to be set based on various factors, which are going to vary from place to place. ←Baseball Bugs ^{What's up, Doc?} carrots→ 04:51, 9 October 2014 (UTC)

You're missing my point. I'm saying it can't be calculated from a set formula. Clarityfiend (talk) 06:07, 9 October 2014 (UTC)

So you said "The OP specifically asked for a formula", and your followup on that is "There is no formula." Right? ←Baseball Bugs ^{What's up, Doc?} carrots→ 06:29, 9 October 2014 (UTC)

Right. Clarityfiend (talk) 02:48, 11 October 2014 (UTC)

Einstein quote

What does "God is subtle, but He is not malicious" mean? --217.118.85.87 (talk) 10:55, 7 October 2014 (UTC)

Check out Einstein on Wikiquote. Fiddlersmouth (talk) 11:24, 7 October 2014 (UTC)

See also Epicurus. μηδείς (talk) 20:15, 7 October 2014 (UTC)

The actual quote was, "Raffiniert ist der Herrgott, aber boshaft ist er nicht". Which loosely translates to "God is subtle, but He is not malicious" or more recent translations have it as, "God is slick, be He's not mean". Einstein himself has been quoted with this explanation, "Nature hides her secret because of her essential loftiness, but not by means of ruse". My information can be found at: Dominic.johnson103 (talk) 14:41, 8 October 2014 (UTC)

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