What determines the rent rate for an apartment?

Question

I was in the process of building a nice big apartment building and upon placing the apartment doors, I realized that the current rate for the apartments is $4,800 per week. At this point the apartments are just an empty room. That is excessive for an empty apartment. I would not consider these apartments exceptionally large either. Any ideas?

cinebar · Answer

The cost of materials and how many walls per square foot.  Then if there is a huge difference between lots it's the price of furniture added.  But material used in each apartment is just as important (doors, wall coverings, windows, siding, tiles etc.) that all adds up to.  It's cheaper when you build an apartment building with that $2 paint etc. (or $0)  You can test while building by not adding anything to see which unit starts out higher than another. Walls cost money, too. ETA: Also the size of lot you began with also is divided up.

jdm14_xx · Answer

Yeah I think it’s the same as houses. The more you put into it as far as walls/flooring and furniture will add to the value of the lot/living space.

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What determines the rent rate for an apartment?

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