Calling Something A Penthouse Makes It More Pricey To Rent

Attempting to dissect how labeling a unit the "penthouse" versus, say, an apartment that is simply on the top floor?affects rental prices, broker Dan Bamberger sent out a newsletter blast with two rather telling charts. He notes that brokers tend to like tacking on the penthouse moniker because it attracts buyers and renters who ordinarily wouldn't be interested. (And sometimes the schmanciest buildings have multiple penthouses, which is just darn confusing.) Above, the breakdown in rental prices between apartments that are called the penthouse and those just on the top floor. The premium that gets added to the rent because it's a penthouse is laid bare in these "cheaper" units: "Specifically, in apartments with a monthly rent of $10,000 or less, the label 'PH' adds an average of $1,355, or nearly 30%, to what would otherwise be $4,537 [in] rent."

"In apartments with a monthly rent greater than $10,000," Bamberger writer, "the label "PH" still commands a premium, although at 5.5% it is less pronounced." Here's the takeaway: "So, if you're looking to rent a top-floor apartment, ask yourself: 'Am I paying a premium for the 'PH' label?' You may find that a top-floor apartment not labeled "PH" provides a better value for what is essentially the same product."
· From the Outhouse to the... Penthouse? [Bamberger Report]