How much rent to ask: pricing your apartment

Where the price comes from

Armenia does not regulate rents: under the Civil Code, the amount is set by agreement between the parties (Article 671). That leaves one benchmark — the market, meaning the prices of similar apartments being let right now.

The better you pick your “neighbours” for comparison, the more accurate your price will be. Comparing a three-room apartment in Kentron with a one-room flat on the outskirts is pointless: they attract different tenants with different expectations.

Step 1. Collect 10–15 similar listings

Open the rental search on tuk-tuk, choose the district and number of rooms, and look at listings on the map. Keep the ones that match yours on the main points:

• the same district or neighbouring blocks
• the same number of rooms and a similar area, give or take 10–15 m²
• a similar building type: new build, Stalin-era, panel block
• comparable condition: fresh renovation, lived-in, or in need of updating
• furniture and appliances included

Write the prices down and drop the extremes — the cheapest and the most expensive. The middle of what remains is the market range for your apartment.

Step 2. Adjust for your apartment

Within that range, the specifics of your apartment move the price up or down. What usually raises the rent and what lowers it:

None of these is a fixed percentage. Check whether any of your shortlisted listings have that advantage and how much more they ask.

Step 3. Work out what you actually keep

Rent is not yet net income. Before naming a price, estimate your costs:

• income tax on rent — 10% of the rent received, plus another 10% on any amount above AMD 60 million a year (according to the State Revenue Committee)
• property tax, which the owner pays
• utility bills during months when the apartment is empty
• small repairs and replacing appliances between tenants

If the numbers don’t work after costs, think about what you could improve in the apartment itself rather than simply pricing above the market.

Why overpricing doesn’t pay

Vacancy is a landlord’s main enemy. The arithmetic is simple: a price 10% above market only pays off if the apartment stays empty for no more than a month. Two months without tenants and over the year you collect 10 × 1.1 = 11 months’ rent instead of 12 at the market price.

An overpriced listing also goes stale quickly: the same people see it and scroll past. A working rule: if two weeks bring no calls and no viewings, the price is above market — lower it or improve the photos and description.

A discount for a long lease and reliability

Sometimes it pays to give a little. A tenant who signs for a year and pays without delays saves you weeks of searching, viewings and vacancy between tenants. A small discount for a long lease or for paying several months upfront often pays for itself in peace of mind.

The reverse is also true: if you let for a short period, say two or three months, you can keep the rent higher — you are taking on the risk of an early vacancy and a new search.

When to review the rent

Under the Civil Code, rent cannot be changed unilaterally unless the law or the contract allows it (Article 671). So if you plan to review the price, say, once a year, put it in the contract from the start: when and how the parties agree on a new rent.

How do you set your rent? I compare with similar listingsI ask a realtorI charge what the neighbours chargeI work it out from my costs

Key takeaways

• The market sets the rent: compare 10–15 similar apartments in the same district.
• Adjust for condition, floor, appliances and transport.
• Factor in the 10% tax and the owner’s costs — think in net income.
• A price 10% above market only pays off if vacancy lasts under a month.
• Agree how the rent will be reviewed in the contract upfront.