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Determining Apartment Rent: The Value of Amenities, Services, and External Factors

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Author Info
G. Stacy Sirmans () (Department of Insurance, Real Estate and Business Law The Florida State University Tallahassee, Florida 32306-1042)
C.F. Sirmans (Department of Finance Louisiana State University Baton Rouge, Louisiana 70803)
John D. Benjamin (Department of Insurance and Real Estate The Pennsylvania State University University Park, Pennsylvania 16802)
Abstract

This paper examines the effects of various amenities, services, and external factors on rent for multifamily housing. The attributes studied include amenities and services such as covered parking, modern kitchen, and maid service, occupancy restrictions such as no pets allowed, and external factors such as traffic congestion, proximity to work, and access to public transportation. The empirical results show that a number of these characteristics do affect rent. Specifically, such items as covered parking and modern kitchen are important determinants of rent. External factors such as traffic congestion and access to public transportation also have a significant impact. A model is presented to compare the costs and benefits of providing certain amenities and services.

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File URL: http://aux.zicklin.baruch.cuny.edu/jrer/papers/pdf/past/vol04n02/v04p033.pdf
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Publisher Info
Article provided by American Real Estate Society in its journal Journal of Real Estate Research.

Volume (Year): 4 (1989)
Issue (Month): 2 ()
Pages: 33-44
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Handle: RePEc:jre:issued:v:4:n:2:1989:p:33-44

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Find related papers by JEL classification:
L85 - Industrial Organization - - Industry Studies: Services - - - Real Estate Services

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. James R. Frew & G. Donald Jud, 1988. "The Vacancy Rate and Rent Levels in the Commercial Office Market," Journal of Real Estate Research, American Real Estate Society, vol. 3(1), pages 1-8. [Downloadable!]
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Cited by:
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  1. Franz Fuerst, 2008. "Office Rent Determinants: a Hedonic Panel Analysis," Real Estate & Planning Working Papers rep-wp2008-12, Henley Business School, Reading University. [Downloadable!]
    Other versions:
  2. Franz Fuerst & Patrick McAllister, 2008. "Green Noise or Green Value? Measuring the Price Effects of Environmental Certification in Commercial Buildings," Real Estate & Planning Working Papers rep-wp2008-09, Henley Business School, Reading University. [Downloadable!]
    Other versions:
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