Of course, knowing you are helping with the ‘broken housing market’ is the ‘rasion d’etre’ for most landlords, but seeing your rental income hit your bank account has also helps with the warm fuzzy feeling.
However, with all the added costs associated with being a landlord in today’s market, how can you make sure that the amount that’s coming in doesn’t get swallowed up by the amount that’s going out – whilst avoiding being priced out of the market and putting a whole section of tenants off your property?
Research the local area
Whilst the rental market can be a great benchmark, don’t rely on it completely. You must take into account what tenants in your local areas are prepared to pay! Websites like Rightmove and Zoopla can give you a really good insight into what properties in your area are letting for, and putting in the time researching the local market can be invaluable in the long run.
As well as seeing what other properties are letting for, pay attention to how long they are staying on the market for as well. You may see three properties which are priced at £500 a month disappear within a week, whereas you may notice that a property priced at £700 hangs around for six weeks. This might suggest that the more expensive property is slightly overpriced, and tenants are less inclined to pay the steeper rent.
According to Homelet’s most recent Rental Index, the average rents across the UK look like this:
- Scotland: £606
- North East: £527
- Yorkshire and
- Humber: £615
- North West: £673
- East Midlands: £583
- West Midlands: £658
- East of England: £893
- Wales: £606
- Northern Ireland: £602
- South West: £791
- South East: £989
- Greater London: £1,497
Does your property have any features that would impact the rent?
It’s not always easy to find a property that perfectly mirrors yours though? You should after all take into account any factors that might impact the rental rate.
Is the property furnished?You can charge more for furnished
properties, especially in major cities where tenants are reluctant to lug about beds and wardrobes and prefer to travel light.
Are you willing to allow pets? Our recent research revealed that the biggest desire for tenants is to find a property that allows them to move in with their furry friends, so allowing pets could allow you to add a premium to the rent.
Are there good amenities nearby? Being close to local hotspots – especially good local schools -can really boost the desirability of
a property, and in turn, hike up the cost.
Are you on top of transport links?This is a major selling point, and something that shouldn’t be overlooked when you’re setting your rental rate. Don’t underestimate the joy of a short commute! Alternatively,
parking places are also a major plus, especially in built up areas.
Does your décor wow? Some rental properties can be a little shabby, so make yours stand out in the crowd and prospective tenants might be inclined to pay a little extra for a neat, clean finish.
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