Whether you already own a string of properties or you have just bought your first buy to let, rental money is important. Besides, the monthly rent is the main reason why landlords rent out their property.
But, it can be difficult to work out how much to rent out your property for. This article intends to help you understand the best rental price for your house or flat.
What should I charge?
It can be tricky trying to strike the balance. As a landlord, you don’t want to over charge therefore pushing potential tenants away. Also, you don’t want to charge too little and be unable to cover all your costs.
Where should you start? As mentioned, this isn’t an easy task.
Online, there are many different rental calculators that you can choose from to help you decide what the best price will be. There are a few easy ones you can choose from such as Open Rent and HomeOwners Alliance.
Remember, no matter what the price, it is just an indication of how much you could rent for. The actual and accurate amount will need to be based on the property’s proximity. Also, it will be based on the services around the property, such as shops, schools and transport.
As you may have already worked out, the condition of the property also plays a major factor in how much a property can be rented for. Amenities with the property will also need to be taken into account. Such as, whether it has a garden, garage, parking, etc.
You may not also have realised, but deciding whether to rent a property furnished or unfurnished also implicates the rental charges. If you decide to rent a furnished flat, the rent will increase due to all of the facilities.
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The Open Rent Calculator
A great tool to help you calculate how much you should rent your property for is ‘Open Rent’. They have an online rent calculator. All that needs to be typed in is the property’s postcode, address, type, how many bedrooms and the number of bathrooms. From this information, it generates the correct amount you should charge for your rental. It takes into consideration the area and the current market.
Open Rent also create their own reports on data that they have collected. According to their statistics:
- The cheapest town within the UK to buy in is Burnley
- Outside of London, the most expensive town to buy a property in is Oxford
- Within the London borough, Kensington is the most expensive area
- In London, the average rent per calendar month is £1,454
- Outside of London, the average rent per calendar month is £1,027
One of the more traditional routes to get your rental property on the market is advertising your property through letting agents. These can be done online through portals such as Zoopla or one high street agents. This can help the whole process including legal aspects, managing viewing, offers and so on.
How much would letting agents charge to rent my property?
Usually, a tenant find fee is around the 6-8% mark of a rental agreement. However, this can be higher is certain areas such as London.
With a tenant find plus the rent, agreements usually cost more, around the 8-12% mark. If you decide for full management fees this can be an even higher percentage of around 10-15% of the rent.
Before deciding on any estate agents, make sure to compare between agents and the fees.
I started writing for PPO back in August 2019. I particularly enjoy writing about new housing developments and upcoming property events.