Rent – How Much Should You Charge?

Posted : 23/07/2018 | By Amanda Hosking

Deciding how much rent to charge is an important decision to make before advertising your property and taking viewings. You need to ensure the rent you set competes with other properties, and also gives you a respectable return. It can also be a good idea to review your rental prices when tenants leave or renew their tenancy.

There are a number of factors to consider when setting rental prices. Below we discuss the main factors to look at to help make your decision:

The Location

Where your property is located can have a large impact on how much rent you can charge. Properties located in cities tend to have higher rents, however there is more competition. Properties in smaller towns will have lower rents, but less competition.

A good idea is to do some research on rental prices in your area, by looking on websites such as RightMove and Zoopla. Here you can view current rentals and past rentals and look at how long each property has been on the market for. This should give you an idea of how much rent to set.

Avoid overpricing your property in cities or small towns, as you will have a hard time finding tenants as they will opt for more competitively priced properties. If you want to find tenants quickly in the city, it may be a worth setting your rent lower than average so as to have a competitive edge over other rentals. For smaller towns, look at the rental prices around your area and use this as a guide.

Amenities

What amenities are in your local area? If your property is close to transport links, shops, restaurants, schools, parks etc then you will be able to charge more rent for these conveniences.

Your Target Tenants

Consider which type of tenants you want to attract. Students, families, professionals? This can have on effect on how much rent you decide to charge. Think about what rent would be realistic for your desired tenants and what your property could provide for them

Property Highlights

Look at the features of your property, as this can also have an impact on the rent you can charge. Factors to consider are:

• Car parking spaces (car park, garage or driveway)
• Furnished or unfurnished
• The size of your property
• The condition of your property
• Your properties interior (modern or old)
• Number of bedroom and bathrooms
• Garden or yard space

For example, a property that has a modern interior and car parking will have a higher rental price than a property that has an older interior and no parking.

Content retrieved from: http://www.pims.co.uk/blog/landlord_tips/rent_how_much_should_you_charge/.