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

Guide to letting out your property in Rochdale

Unlocking Your Dream Home Together: 6 Must-Ask Questions for Couples!Investing time, effort, and money to prepare your property for rent is a wise decision. It can help you attract suitable tenants, prevent issues after they move in, and maximise your investment returns. However, getting everything in order for a rental property can seem overwhelming, give...

Read More
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
What Are the Costs of Purchasing a Home?

Buying a house is an exciting and life-changing experience, but it can also be an expensive process.  There are many costs to consider, from your deposit and stamp duty to the legal fees and removals. It's important to understand what fees you can expect to pay when buying a house so you can plan and budget accordingly.  In this post, we'll take...

Read More
Why your house is not selling in Littleborough

If you have had your house up for sale in Littleborough for some time and are struggling to find a buyer, there could be several reasons why it is not selling. Instead of feeling frustrated and giving up on selling altogether, consider these potential factors and our expert advice on how to address them: Your Asking Price Is Too High One common reason for p...

Read More
Stay up to date with our latest news