Which factor affects the Market Rent of a property?

The current market demand and supply play a crucial role in determining the Market Rent of a property. When demand for rental properties in a specific area exceeds supply, landlords can raise rents since more tenants are competing for limited units. Conversely, if there is an oversupply of rental units, landlords may have to lower rents to attract tenants.

The dynamics of supply and demand directly impact pricing strategies and decisions property owners make in setting their rental rates. Understanding these market conditions helps both landlords and potential investors evaluate property performance and forecasting future revenue. Factors such as local zoning laws, property age, and the owner's financial situation may influence specifics about a property, but they do not directly dictate the market rent like current demand and supply do.