Unlocking the Key Principles for Determining Your Monthly Rental Rate

6th October 2023
Home > News > Unlocking the Key Principles for Determining Your Monthly Rental Rate

If you’re a first-time landlord about to rent out a property, or an established landlord looking to purchase a new investment, one of the main questions you’ll have is how much rent you can charge per month.

 

Of course, you can (and should) take the advice of your agent, but it’s also worth understanding exactly what factors impact the amount of rent you can sensibly charge.

 

In this quick read, we explore the factors you need to consider before pricing your rental property.

 

Compare

 

The first thing to look for is properties that are similar to yours. What rents are they achieving? It’s important to look at the number of bedrooms and bathrooms, accessibility and outside space to make a proper comparison. Once you’ve got a basic idea, you can think about why you might be able to charge more (or less).

 

What’s your USP?

 

Think about what makes your property different. Is there a driveway or gated parking? How big is the garden? Is it newly renovated? Do you have a functional space such as a home office or gym area? If it’s a flat, is there a lift or balcony? Picking out the features that add value to a property will often reflect the amount of rent you can charge.

 

Surrounding area

 

An important factor for most tenants is how close a property is to amenities such as shops, supermarkets, transport connections and schools. You may be able to charge a higher monthly rent if a property is well-connected and close to places people may need daily.

 

Monthly costs

 

Keep your costs in mind. How much are your monthly expenses? There’s your mortgage, service charge and/or ground rent (for flats), insurance and potential maintenance costs to consider.

 

Most landlords take a long-term approach to investing. If your rent covers your costs and you still make a small profit, then you’ve got yourself a good investment.

 

Don’t get greedy – charging over and above the average local rental prices won’t get you very far, and you may be stuck with a vacant property.

 

Agents’ expertise

 

It’s always a good idea to take the advice of your letting agent. Not only do they know the area, but they know what tenants want, expect and – more importantly – what they’d be willing to pay for a property like yours.

 

There are multiple factors that impact the amount of rent you can charge. Speak to our team if you’ve got a rental property and need new tenants.


Share this article

Related News

How To Remove A Name From A Joint Mortgage In The United Kingdom

If you're currently part of a joint mortgage and looking to remove your name from it, you're not alone.  There are many reasons why someone might want to remove their name from a joint mortgage, including getting divorced, removing an investor, or just a straightforward buyout. Whatever your reason, this article will provide guidance that’ll help...

Read More
Your Dream Home - How to Make it a Reality

  We all have a mental picture of our ideal dream home - some of us may even be lucky enough to already live in it! For those of us still trying to make that particular dream become a reality, plenty of things can stand in the way of that happening. Day to day life is, according to the old phrase, "what happens while you're making other plans" and it...

Read More
Mortgage Valuations Explained: What, Why, and How Long

  Mortgage valuations are standard procedure when buying property, but their purpose can be confusing and will often cause buyers to question aspects of the process. Today’s post aims to answer those queries for you. Let’s dive straight in, shall we? What is a mortgage valuation? Sometimes referred to as a valuation survey, mortgage...

Read More
What is the Difference Between Tenants in Common and Joint Tenants?

It’s Important Not To Overlook The Sometimes Dull But Essential Details That Go With Purchasing A PropertyIf you and your partner or friend are planning to purchase a home in Rochdale or Littleborough, it's natural to feel enthusiastic about the process. However, it's crucial to consider all the necessary but mundane details that come with it. When it...

Read More
Stay up to date with our latest news