“How much rent should I charge for my property?” It’s a common question that many landlords and letting agents, new and experienced, find challenging to answer. You risk increasing void periods if you charge too much rent but risk a loss of income if you don’t charge enough.
When you consider location, tenant demand, and the type of property you’re letting, deciding how much tenants pay to rent your property becomes simpler. Below, we look at all the factors you should consider when gauging how much rent to charge for your property and tenants.
Property type
When asking, “how much rent should I charge tenants?”, one of your answers may come down to what type of property you’re trying to rent. How much rent you charge will depend on whether you’re letting a flat, a studio, or even a semi-detached home. Landlords and letting agents should also consider the number of rooms inside the property and extras such as gardens and parking spaces.
Consider these factors and use them in your market research of other properties in the area. Depending on what they can offer, you can work out an average of how much rent other landlords and agents are charging. When deciding how much rent to charge, think about what you can offer potential tenants other properties on the market can’t. You can usually increase rent depending on whether you have a garden or parking spaces on your property if others don’t provide them. What’s also important to consider is whether to furnish your property or leave it unfurnished. You can also ask letting agents or agencies about the average rent charged for your type of property if you’re a landlord.
Furnishings
With furnished properties, you can increase rent if you have higher quality and durable furniture. The extra advantage that comes with this is that you can use this furniture across future tenancies. Furnished properties may also attract your target tenants like students and fresh graduates. For more tips on furnishing your property, check out our article on whether to furnish your property or leave it unfurnished.
So, how much rent should I charge for an unfurnished property? That will depend on ‘white goods’, such as cookers, fridges and freezers inside your property and if tenants like young professionals want to bring their furniture. If you’ve installed new appliances within your property, make sure to reflect that in your rent increase too. Make sure to check out our tips and the advantages of furnished or unfurnished properties.
Property location
When asking “how much rent should I charge for my property?” a property’s location is important to consider. Depending on the type of tenants that landlords and agents are attracting, it’s crucial to think about local amenities. Is your property located close to a city centre or university? What is the selection of supermarkets like in the area? Are transport links closes? You could charge a higher rent depending on these factors.
Remember that tenant demand will be linked closely to where the property is located. Consider who you want to let your property to and what amenities are located nearby.
Smart tech
Technology is becoming a demand in rental properties now and should be considered when landlords and agents ask, “how much rent should I charge?” You may not want to deck your property out in all the latest technology, but devices like smart assistants, smart lighting, and security are a few of the things landlords and letting agents can implement. The number of smart devices you have inside your property should be reflected in the rent.
Minor renovations
When you make minor renovations, this will usually involve updating and replacing things in your property. These can be as simple as:
- Repainting
- Laying new floor
- Replacing the facing of cabinets
- Replacing countertops
- Adding crown moulding
- Treating windows
You can increase rent based on minor renovations you make, and they’re essential when you’re still figuring out “how much rent should I charge my tenants?”
Bills included
Answering “how much rent should I charge for my property?” depends on whether landlords and letting agents decide if bills, including utilities like energy, water, and gas, are inclusive. 72% of tenants prefer renting with bills included, and not only is it easier for tenants, but it’s just as easy for landlords and letting agents. With bills included, you’ll see an increase in tenants renewing tenancies, reduced void periods, and an easier time managing your payments.
Resooma Bills takes out the hassle of utility and bill management. We combine all your property bills into one simple monthly payment, and the set-up is a breeze. With an easy-to-use dashboard, your bills and smart meter readings are found all in one place. With bills inclusive, you can increase your revenue stream by £10,200 annually and even earn a commission for every tenant you refer to use our service, with upfront or monthly payments. How many utilities you have in your bills inclusive package will answer “how much rent should I charge?”
How much rent should I charge for my property?
It all depends on the property’s location and what kind of tenants you’re targeting. What’s important is that you research the market and other similar properties. Find what makes your property stand out and what your property has to offer that would appeal to target tenants.
Do you have tenants moving into your property soon? Then take a look at our pre-tenancy checklist to ensure you’re ready for a smooth move-in. For more information on our bills inclusive service, click here.