A PROPOSAL OF A MORE BENEFIT-REFLECTING RENT SYSTEM WHICH EQUALIZES THE COMPETITIVE RATES OF APPLICATION FOR PUBLIC HOUSES IN TOKYO

Abstract

This paper proposes a rent system of public houses in Tokyo in view of tenants' benefits such as location and sizes, so that competitive rates of application for these houses will be equalized. It is shown that the discrepancy of the differences between market rents and actual rents of the houses should be reduced. ln particular, the coefficients to adjust location and size factors should be raised while the coefficient of building age should be lowered. Based on these results, a rent determination method is proposed, in which each benefit factor has an equal degree of contribution to the rent.