Reference no: EM131681555
(a) Rent schemes are used to calculate and estimated rent for most houses. Each house attracts points on the basis of its amenities, house type, and age. Therefore, the amount of rent paid is dependent upon such three points. The award of these points is in accordance with the age, size of rooms, value and the type of property among other facilities. The utility fee will be a very important factor when people are choosing a house to rent since it is a variable monthly fee. From my perspective, the house with a utility fee include will be a better choice, because you will never wrong about it over budget. In the provided case of a 3-bedroom house with only one bathroom, I will consider the rent to be $ 14.50 per square foot. Therefore, I estimate the property is located near the University of Guelph for 1000 sq. ft., the value is multiplied by 1000 which equals to $ 14,500 per year (One bedroom monthly cost will be $403).
(b) If there were a 1 standard unit deviation larger than 1000 square feet, definitely this would impact the monthly rent paid for the unit in that there would be an increase in the amount payable for it. There will be an increase per sq. unit and this would increase the charges.
(c) The amount of rent that should be charged is dependent upon the market value. For example, it should be a percentage of the home's market value. The typical rental charges range between 0.8% and 1.1%. Thus, I think that the claims of $ 50 per month for an extra bedroom would be consistent depending on the market value.
(d) In the prediction of rent for the same unit less the square footage, a smaller value would be obtained as compared to the initial value in the first part due to the reduced size in sq. ft. I estimate the rent to be $12.50 per sq. ft. The regression value will, however, be less significant.
(e) In my opinion, Walkscore is more important to monthly rent since it raises the value of the property. Walk Score helps people find a walkable place to live. It is an environmentally-friendly factor and it also brings an overall health and wellness. For example, a high walk score means less driving, and less driving directly translates to less CO2 emissions, fewer expenses and more health. In case of the rent payment is also on the basis of a great surroundings, Walkscore is, therefore, more important as compared to transit score.