Rental Market Trends
Real Estate Strategy
Jan 6, 2026
Setting the right rent for your property is one of the most important decisions you’ll make as a homeowner. Price it too high, and the property may stay vacant. Too low, and you lose out on income every month.
This guide will walk you through a practical approach to estimating rent—based on local factors, property type, and what tenants are really willing to pay in cities like Bangalore, Kochi, and Trivandrum.
1. Understand the Local Market
Start by looking at:
Current listings for similar properties in your area
Rental price per square foot in your neighborhood
Whether demand is driven by students, families, or working professionals
For example:
In Bangalore, rentals near IT hubs like Whitefield or HSR are typically higher due to demand from tech professionals.
In Kochi, furnished 2BHKs in Kadavanthra or Kakkanad may fetch more during tourist and relocation seasons.
In Trivandrum, long-term tenants near Technopark may prioritize value over amenities.
Use property platforms and local listings to benchmark a base price range.
2. Factor in Property Type and Condition
The type and condition of your property significantly affect pricing. Ask yourself:
Is it a standalone home, apartment, or gated community flat?
Is it furnished, semi-furnished, or unfurnished?
Has it been recently painted or renovated?
Properties in well-maintained buildings or those with additional features like parking, power backup, or balcony views can often demand a rental premium.
3. Consider Property Size and Layout
Rent usually increases with size, but layout also matters.
A well-designed 2BHK with proper natural light may rent faster than a poorly ventilated 3BHK.
Floor level, number of bathrooms, and usable storage space are often deal-breakers for tenants.
Be realistic about what features truly add value.
4. Include Amenities and Maintenance Costs
If your apartment is in a complex that charges high monthly maintenance, you’ll need to factor this into your rent.
Decide whether:
You’ll include the maintenance fee in the rent
Or charge it separately (common for premium apartments)
Also consider including:
Wi-Fi or housekeeping (if provided)
Water or gas supply charges
These inclusions should be clearly stated in the rental agreement.
5. Leave Room for Negotiation
Always expect prospective tenants to negotiate. If your target rent is ₹25,000, list it slightly higher (₹26,000–₹27,000) to leave room for flexibility.
Vacancy is a bigger loss than offering a small discount. A property that sits empty for one extra month offsets any gains from higher rent.
6. Don’t Forget Taxes and TDS
For NRIs or higher-value rentals (over ₹50,000/month), tenants may be legally required to deduct TDS before transferring rent.
Be sure to:
Discuss this upfront
Adjust your expected income accordingly
Speak with your property manager or accountant
Final Tip: Keep Revisiting Your Rent
Review your rental rate once a year. If market demand rises, or if you’ve made upgrades to the property, consider increasing rent by 5–10% after the lease term—within legally acceptable limits and always with proper notice.