Get in touch today
Supporting you and protecting your property are our top priorities.
Get in touch and let us know how we can help.
A regular income of rent is one of the joys of being a landlord. Not only does it help your day-to-day living but it’s also essential to the healthy maintenance of your portfolio. So how much rent should you charge your tenants to rent your property? The answer’s far from simple but with a bit of guidance you’ll be on the right track.
There’s a serious problem that comes with discussing rental costs. If you get this wrong, it can have a detrimental effect on your entire business. Also, it’s notoriously difficult to increase the rent when you’ve already set it. Opt for too little and you’re facing a potential loss. Charge too much and you may struggle to fill the property.
This is your best way to gauge an appropriate price. Look at properties of the same size in your surrounding area. If most rentals charge a similar amount then you’re going to have to be competitive.
When researching the market, consider where your property sits. If you can offer something significantly better than your competition, it’s worth placing your property at the upper end of the spectrum. Alternatively, if your house/flat is lacking in a few key areas then it might be worth dropping your price.
So this isn’t the most attractive part of the landlord role though it’s an essential one. The income is the biggest draw of buy-to-lets. You need to work out your rental yield. In layman’s terms, this is the percentage of your purchase price which you take each year.
There’s a simple formula to work this out. Deduct all costs from the rent you receive. Then divide this into the property value (including any additional purchasing costs). You’re then left with the rental yield (make this a percentage). For example, if the annual rent is £10,000 and your property cost £200,000, you’re left with 0.05 which equates to 5%.
If you’re hunting for the next addition to your portfolio, it can be a headache to go through this equation over and over again. If you’re looking for a quick fix, head over to This is Money and give their Buy-To-Let Yield Calculator a try.
Before you settle on the rent you charge, you really ought to work out your rental yield.
There are numerous key factors that dramatically affect the rent you can charge. Here are some of the most important points to think about:
Being a landlord can be very stressful. Don’t let inventories become another addition to this. Find out how No Letting Go’s inventory services can help take the pain away from the process.
Landlords and property professionals get ready! Thanks to the introduction of the Tenant Fees Act on 1st June, you’re likely to see an influx of tenants looking to benefit from this ban on tenant fees. Recommendations from No Letting Go […]Read more
In a rapidly changing world, the property management industry needs to keep up. With the widespread digitisation of products and services taking over almost every sector, estate agents, property professionals and landlords alike will need to stay on the pulse. […]Read more
Some believe tenants with criminal convictions are less likely to pay rent, and more likely to cause damage. However, is it really that simple? Should you let to tenants with a criminal record? Let’s take a closer look to help […]Read more
Ending a tenancy can be awkward for both tenants and property professionals. Dealing with tenancy deposit returns, outstanding rent and resolving disputes can take time and a lot of effort. So, how can tenants and landlords alike ensure the end […]Read more