If a competitive property has a health club valued at $50, what should the subject property charge for studio apartments to remain competitive?

To determine the appropriate charge for studio apartments to remain competitive, it's essential to consider the value of the amenities offered by similar properties in the market. Since the competitive property has a health club valued at $50, this amenity effectively adds value to the overall living experience for tenants.

In the competitive landscape, if the other property charges a certain rate for their studio apartments while offering this health club, the subject property would need to offer a competitive price point that accurately reflects the amenities, market conditions, and potential demand. Since the charge of $900 is a strategic choice, it may mean that the subject property recognizes the necessity to remain appealing to potential renters without pricing themselves out of the market while accounting for the health club's value.

By setting the rent at this level, the subject property can attract tenants who value amenities while ensuring that the rental charges remain attractive compared to the competition. Thus, this price point can help maintain occupancy rates and prevent vacancy loss while still generating revenue from the studio apartments.