Rental Evaluation for Buy-to-Let Properties – How Much Rent Should Landlords Charge?

Deciding how much rent to charge your tenants is one of the first things to consider with a buy-to-let property. If you overcharge, you may not have interest in the property. Undercharge, and you may not make a profit. Getting the right balance and charging the correct rent is important.

Here we look at things to consider when pricing up rent for your property.

How to Determine The Right Rental Price

Property Location

Rental prices obviously differ significantly throughout the country. Areas considered to be in higher demand, like Cities and university towns, will bring in a much higher rental value than small towns that are not close to transport links, amenities or work opportunities. It is best to research the appeal of your area and look at prices of similar properties to gauge an idea of the right rent amount.

Property Condition

There is a vast difference between a well-maintained and neglected property. Things such as dampness and mould must be treated before you rent your property out. Old carpets, broken fixtures and poorly decorated rooms will also bring a lower rental price.

Property Size

It is not just about the number of rooms a property has but also the size of those rooms. A three bedroom house may have one double room and two box rooms – this will bring in a lower rental value than one with two doubles and a single. Does it have a kitchen, living room and diner? Or a conservatory? How many bathrooms? Is the garden grass or courtyard? All of these things will affect the price.

Property Features

This includes anything that would benefit the property, such as a driveway, power shower, garage, shed, study, garden room etc. Perhaps the property is furnished or has brand new carpets throughout, or maybe it comes with all white goods. These will boost the rental value of the property.

Increasing Rent for Current Tenants

We are all facing much higher bills than this time a few years ago, and a slight rental increase is to be expected for many. When deciding how much you will increase your rent, you must first ensure you adhere to the rent increase limit set out by your original contract with the tenant. Then you should weigh up the value of the tenant – would you want to risk them leaving for something more affordable?

The best and most accurate way to determine how much rent you should charge for your property is by enlisting the help of an expert in the field, such as Hardings Lettings.

For professional rental services, contact Hardings Lettings on 01277 233400.