Landlord using calculator to work out how much rent to charge tenants

How Much Rent Should I Charge My Tenants?

Ever found yourself asking the question how much rent should I charge my tenants? Before you start marketing a property or renew an existing tenancy, it’s best to find out how much rent you should be charging your tenants in order to be a) competitive and b) get the most out of your investment property.

Landlord using calculator to work out how much rent to charge tenants
How much rent should I charge my tenants depends on a number of factors.

Working out how much rent should I charge?

When you are renting out a house or a flat, you want to be able to maximise your profits, while also being fair with prospective tenants. If you charge rents which are too high, you are likely to put people off, which can make it difficult to find tenants fast.

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Our expert letting agents will carry out a free rental valuation and send you a ‘Best Price Guide’ using exclusive property data from Rightmove & Zoopla.

These are some basic points landlords should consider when trying to find the right rental price to charge tenants.

Location vs Competition vs Demand

The location of the property is one of the main considerations when it comes to working out how much rent should I charge.  If the property is in the middle of a busy city like London, Manchester, Birmingham etc you are likely to be competing with a number of other landlords with vacant properties.

I was conducting a best price guide for one of our landlords recently and within a 1/4 mile radius of their postcode, there were over 200 similar properties available to rent on Rightmove!

Unfortunately, the demand for properties in this location did not outweigh supply… quite the opposite.  So in these situations, I would recommend marketing the property just under market value to give you a competitive edge.

For out-of-town properties, you may have less competition however, if you over-price, you will still struggle to let it out.  Find a balance between what is currently available, what has been let in the last 6 months and what is your appetite to get a quick let and reduce any void period.

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Knowing your target audience

You should also think about the type of tenants you are looking for in your property. Are you happy letting a property to students or would you prefer professionals?

We recently took on a 6 bedroom property in a student area however, the landlord did not want students.  Needless to say the property remained on the market for a while until the landlord agreed to open up the net and allow students… the property was let thereafter.

Size of property

The size of the property is another consideration and also any additional extras, such as a garden or garage. Again, looking at properties of a similar size will help give you a better idea of the best rates to charge.

Amenities / transport links

You should also consider the local amenities. If you are situated near popular attractions, you can definitely charge more for rent.  Proximity to train stations or the tube if you are in London plays a vital role in pricing up your property.

Furnished / unfurnished

Furnished properties are generally more expensive than unfurnished although not in all cases. You may want to think about furnishing the property although the cost of maintaining the furnishings may be prohibitive.  Here is a little further info on whether to let a property furnished or unfurnished

How much rent should I charge? A best price guide will show you

As an experienced online letting agency, we can advise you on the most appropriate rents to charge tenants. We can advise you on the most competitive rental rate and the best time of year to let a property to ensure you manage to let out your property as quickly as possible.

Get my free rental valuation
Our expert letting agents will carry out a free rental valuation and send you a ‘Best Price Guide’ using exclusive property data from Rightmove & Zoopla.

About Jonathan Daines

As Founder and CEO since 2008, Jonathan’s passion for property, technology and entrepreneurship inspired the creation and innovation of LettingaProperty.com. With the support of a dedicated team of industry professionals, for the past 11 years he has built a digital marketplace offering low-cost services that empowers landlords and tenants to let and rent property with ease.

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How Much Rent Should I Charge My Tenants?
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How Much Rent Should I Charge My Tenants?
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How much rent should I change my tenants? Here are our top tips on working out how much rent you should be charging your tenants.
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LettingaProperty.com
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One Comment

    August 26, 2017 REPLY

    Can a landlord do a12 month tenancy for students HMO to avoid having a void period ?.. ie making students pay july to june to secure property, even though the property isnt ready to be moved into straight away? ( The landlord is redecorating after a makor condensation problem but there is such a shortage of properties in the arrea the stuxents felt they had no choice but to pay the rent for july / august even though university doesnt start until end of september! Seems so unfair to me as daughter is working all hours to try raise enough to pay thr rent instead of having a bit of a break!!
    Regards student mum!

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