How to fix the amount of rent in Morocco ?

Are you looking to rent out a property? But how do you set the rental price for your apartment or house? Here's what you need to know about rental prices in Morocco.

What the Law Says

Law 07/03 relating to the revision of rent for residential leases allows the landlord and tenant to freely agree on the rent amount and its revision in the contract (remember that a lease contract is mandatory).

However, rent increases are limited to 8% for residential leases. Also, the frequency of increase is limited to once every three years. In other words, the landlord can increase the rent every three years.

That's what the regulations stipulate.

A Must : Rental Yield

The challenge for you as an owner is to maximize the rental yield (the ratio between the rent you will receive minus charges – taxes, maintenance fees, etc. – and the purchase amount) while minimizing the vacancy period (the time during which the property will not be rented).

Therefore, it will be necessary to set a rental price that allows you to find the right balance, as a rent that is too high will lead to a high turnover of tenants. Conversely, a rent lower than the market rate will be detrimental to your investment.

Good to know : Rental yield varies greatly depending on the type of property for rent. It can range from 3 to 4% gross for a large apartment or villa up to 6 or 7% gross for a studio or two-bedroom.

Criteria to Consider When Setting the Rent Price

Now that you have all these elements in mind, here are some criteria to help you set the rent amount.

1- Location

The location of your property will of course influence the rent amount. Which neighborhood is it in? What amenities are nearby? Is it a busy thoroughfare or, on the contrary, rather quiet? The answers to these questions will push the price up or down. It is also important to inquire about the local rental market prices in your area.

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2- The Nature of the Property

Studio, apartment, villa... The nature of the property offered for rent obviously impacts the amount of the monthly payments.

3- The Living Space

This refers to the floor area where the ceiling height is greater than 1.80m, counting all rooms as well as built-in closets.

The number of rooms is also important. You will also need to consider additional spaces such as a parking spot or a cellar, which will allow you to further enhance your property.

4-The Condition of the Property

Has your property just been renovated? Perfect! You can impact the rent amount. If the apartment or villa offered for rent is not as new, this will also have to be taken into account. It is worth mentioning that Moroccan law requires that the property offered for rent be decent and livable.

5- The Floor

It is known that the floor level of an apartment affects its sale price. In June 2021, according to data from Agenz, we recorded a price variation of 15% depending on the floor!

In terms of rent, the floor can also have an influence. Indeed, for example, a ground floor or first level may offer less brightness and more vis-à-vis, while a higher floor will offer a clearer view and more light.

6- Features

Exposure, balcony, gardens, fireplace, private pool, etc. are all criteria to consider when setting the rent amount. The higher the level of services of your property, the higher the rent you can expect.

7- External Amenities

Reflect all the services and amenities that differentiate your property. Among these, we can mention the elevator, the presence of a guard, or the intercom. Of course, being in a secure residence is also to be valued.

8-Rental Conditions

Will you offer your property empty or furnished? Generally, furnished apartments or houses rent for more than those offered unfurnished. Each of the two options offers advantages and disadvantages.

It is sometimes easier to find tenants by offering a furnished property, and as mentioned earlier, the rent will be higher. Often, these rentals are short-term, and maintenance is more expensive. Empty rentals generally offer a much more limited tenant turnover.

9- The Duration of the Contract

If you have found the ideal tenant, it may be interesting to slightly review the rent amount downwards to keep them longer! A tenant who stays for a long time secures the regularity of rental income and limits the vacancy times of your properties.

To get the amount of rent in Morocco for free in 2 minutes, make your estimation on agenz.ma!

Salima Hamrini Editor and journalist specializing in real estate.

25 Oct 2023