Davidson College Faculty/Staff Rental Housing – Rent Formula
Prepared by: Sylvia McDaniel, 3/9/99; revised 2/1/08
(To be given to each new tenant and faculty candidate)
• The faculty/staff rental housing program is an auxiliary budget that must
• Davidson College follows IRS guidelines, which require that employees
pay 5% or more of the appraised value of the property for rent; currently
we are using 5%. Note: Our research of rental properties in the
Davidson area shows this to be approximately 60% of current area rents.
• Houses are appraised every five years and reappraised if renovation
• The appraiser studies the property values over the past year and provides
a letter for each non-appraisal year stating what the property values have
shown for that year and the appraised value is adjusted.
• Example: If a house appraised at $100,000 in the fifth year and the
following year the market increase was 6%, the value would be $106,000
x 5% or $5,300 divided by 12 months which equals $442 for the base
rent of that property. If it is a property that consists of equal or different
sized units, we convert the square footage to a percentage of the house
used and apply this percentage to the formula.
• Some properties share utilities (electricity, gas, water/sewer) and
separate metering is not possible. We use the past year’s history and
project an average monthly cost that is added to the rent. If it is a
furnished apartment used by different people each semester, a $ value is
added in for furnishings, replacement, depreciation, etc.
• Davidson College maintains the grounds of each rental unit, carries a
pest control contract for roaches, ants, mice, etc at no additional charge.
(Flying insects such as wasps, yellow jackets, honey bees, flies, are
normally the responsibility of the tenant. Flea control (when tenant owns
a pet) is the responsibility of the pet owner.) Garbage and recycling pick
up is provided by the contractor hired by the Town of D