A Guide to Valuing Your Buy-to-Let Property for Rent

Unfortunately, there are no hard and fast rules when it comes to answering the question of how much rent should I charge. You can of course make use of the various online calculators to get an idea of what your property could be worth on the rental market, but when it comes down to it, research is key, as are a number of other considerations.

Location, property size and condition and the features of the home are all factors involved in calculating how much rent to charge. Your online calculation really is only an indication and shouldn’t be considered as a be all and end all rate. Let’s take a look at the key points to consider when setting your rental rate.

Location

One of the biggest driving factors of rental value is location. Rates vary greatly throughout the country, and even within the different areas of London.

You really are better placed looking at typical values for similar properties in your specific area, than going by national averages. You can do this by searching the online property portals such as Zoopla and Rightmove, checking Gumtree, or looking through local newspapers.

Also consider the buoyancy of the local rental market. If there is high demand and low supply, then you will be more likely to achieve a greater rental rate. However, if there are more properties on offer than there are tenants seeking a place to live, then you will need to aim lower.

Furnished or unfurnished?

Whether you rent your property furnished or unfurnished will have a direct impact upon the rent you can charge. The more furniture and fittings supplied, and the higher their spec, the greater the rental rate you can command.

There is a caveat however, as all this depends on the type of tenants you are looking to attract. Some, such as young professionals, will be more prepared to pay more for a stylishly furnished property, whilst others, such as students, won’t place such a high level of importance on it. Long term tenants and families may wish to bring their own furniture, and may therefore prefer to rent unfurnished or part-furnished.

Property features

When considering how much is my house worth to rent, factors such as energy efficiency, size and condition will all have a bearing. The larger the property and the more bedrooms is has, the more tenants will be prepared to pay for it.

A well-maintained, nicely decorated property inside and out will tend to command higher rental rates, and bonus features such as a garden, off-street parking, smart controls, high speed internet and eco-friendly characteristics will enhance rent-ability.

Whether such features will allow you to charge more than the average for your rental property is arguable, but when it comes down to a choice for tenants between your offering and one that doesn’t have such features, their decision will be an easy one.

Tenant budgets

It really is important to consider the type of tenants you are looking to attract when it comes to how much rent to charge.

If your target market is students for example, because your property is located close to a college or university, then you will need to bear in mind that student budgets are going to be a lot lower than, for example, those of high-earning professionals.

Local amenities

Prospective tenants will always think about paying more for a property that is situated close to popular amenities.

Good schools, commercial zones for work, leisure facilities, shops, green spaces and excellent transport links will all be considered attractive features, for which you may be able to charge a premium.

Pet friendly rentals

Rental property that’s pet friendly isn’t easy to find, so if decide to allow pets, you may well be able to charge a higher rent.

Of course, you’ll need to factor in the additional wear and tear pets will inevitably cause, and you’ll need to think carefully about things like flooring, and whether going unfurnished would be the better option but, all considered, it may make your property more rentable to appreciative tenants.

Consult local letting agents or property management companies

Local letting agents and property management companies are a valuable source of information on the climate of the local property market. Out of everyone, they will know precisely what tenants are currently seeking property and location wise, and what they’re prepared to pay. Be sure to talk to more than one so that you can get a rounded idea.

Still do your research though so that you are in a position to ultimately make your own informed decision about how much rent to charge.

Be realistic about how much rent to charge

The most important piece of advice that any landlord can take when asking, how much should I charge for rent, is to be realistic. Whilst you won’t want to undervalue your property’s worth, by the same token you won’t get very far if you set an unreasonable rental rate.

Want to know how much rent to charge? Get a free valuation from homes2let.

Renting your property through homes2let could net you considerable savings compared to the traditional letting agent route. When you ask, how much is my house worth to rent, we’ll give you a realistic yet competitive valuation, and then take care of everything, including sourcing tenants and getting your property ready and legally compliant for rental.

With our service, you won’t have to worry about a thing, including whether your rent will be paid on time every month. Our guaranteed rent scheme involves us letting your property to local authority tenants via our long term contacts in the local housing departments. You will be paid every month by standing order, even during void periods, taking away all your risk and day to day hassle, and replacing it with peace of mind.

To learn more about how the homes2let guaranteed rent scheme, please get in touch with our Croydon based property experts.