Rent is established and estimated based on the profitability for the property and the price charged on the use of space. However, a rent schedule, designed and carried out by management of the owner of the property, include the consideration in what can appeal to potential tenants, the building's quality, and the provided services of the property. When the rent is too high, instances such as vacancies and shortages of cash flows can exist and when rent is too low, the potential profits of the investment can be minimized. Take into consideration the price of renting in today's time, with apartments starting at $1,500 to $1,900, obviously depending on where you reside, the number of vacant properties has increased, mainly because the price is just impossible to meet on a single income. But in situations where rent is $700-$1,000 the property will not be making much profit due to the increase in the costs of everything at this day and time that we are living in. Rent can alternate depending on the competitive market, property's location, and the services that will be provided. The flooring of a property, utilities, amenities, heating and cooling units can all affect the rental rates. Due to the rise in rental prices, in an article I read up on, they talked about how Germany had implemented a rent control to help ease the burden on low-income households. I found this very interesting and compassionate for those who may not be able to afford the prices of things now compared to 15 years ago. It seems, like a good idea, but you also have to consider the property and their profits. It could potentially hurt the establishment.

Breidenbach, P., Eilers, L. & Fries, J. (2022) Temporal dynamics of rent regulations - The case of the German rent control. Regional Science and Urban Economics. https://www-sciencedirect-com.ezproxy.liberty.edu/science/article/abs/pii/S0166046221000971?via%3Dihub(Links to an external site.)

Purcell, T., Loftus, A. & March, H. (2019) Value-rent-Finance. Progress in Human Geography. https://journals-sagepub-com.ezproxy.liberty.edu/doi/full/10.1177/0309132519838064?utm_source=summon&utm_medium=discovery-provider