Determining the change in rental costs involves comparing the new rent amount to the previous rent amount. This is typically expressed as a percentage. For example, if the previous rent was $1,000 per month and the new rent is $1,100, the difference is $100. Dividing the difference ($100) by the original rent ($1,000) and multiplying by 100 yields a 10% increase.
Understanding rental cost fluctuations empowers both landlords and tenants to make informed decisions. For landlords, it allows for setting competitive yet profitable rates, while tenants can budget effectively and assess the affordability of housing options. Historically, various factors like inflation, market demand, and property improvements have influenced rental price adjustments. Analyzing these trends provides valuable context for evaluating the reasonableness of any proposed change.