The formula to calculate the Equitable Rent (R) is:
\[ R = \frac{V \times P}{100} \]
Where:
Let's say the total property value (V) is 500,000 currency units and the fair market rent percentage (P) is 5%. Using the formula:
\[ R = \frac{500,000 \times 5}{100} = 25,000 \]
So, the Equitable Rent (R) is 25,000 currency units.
Definition: Owners' equivalent rent (OER) is an estimate of the rent that would be paid if the owner were renting their home.
Formula: \( \text{OER} = \frac{\text{Annual Rent}}{12} \)
Example: \( \text{OER} = \frac{24000}{12} \)
Definition: This calculator estimates the rent-to-rent ratio, which is the ratio of rental income to rental expenses.
Formula: \( \text{Rent-to-Rent Ratio} = \frac{\text{Rental Income}}{\text{Rental Expenses}} \)
Example: \( \text{Rent-to-Rent Ratio} = \frac{3000}{1500} \)
Definition: This calculator helps landlords determine the appropriate rent to charge for their property.
Formula: \( \text{Rent} = \frac{\text{Annual Expenses} + \text{Desired Profit}}{12} \)
Example: \( \text{Rent} = \frac{12000 + 6000}{12} \)
Definition: This calculator helps tenants determine the maximum rent they can afford based on their income.
Formula: \( \text{Affordable Rent} = \frac{\text{Monthly Income} \times 0.3}{1} \)
Example: \( \text{Affordable Rent} = \frac{4000 \times 0.3}{1} \)
