If you are a landlord in some shape or form, once you have bought a property, it is crucial to price your rent correctly.
Renting a property is worth considering, not only if you are a landlord, but if you are needing to relocate for a job or you’re opposed to just selling. Also, by having a tenant, it can help you to pay off your mortgage quicker. This would in turn help you get closer to your financial goal.
In this blog, we will look at how much you should rent your property whilst creating a financial gain.
What Should I Charge?
For those wanting to rent out a property, it can definitely seem difficult trying to strike the right balance. You don’t want to push away any potential tenants any putting your price up too high; but in the next breath, you don’t to charge too little as you may not be able to cover all your costs.
So, how can you work out how much to charge? Well, these days there are lots of online rental calculators to help you choose. Two that are rated highly to use are Open Rent and HomeOwners Alliance rental calculator.
Should I Get An Online Valuation?
A word to the wise, the prices given on online valuations are only an indication. If you haven’t already bought the property, the actual and accurate amounts will have to be based on the property’s proximity. For example, transport, schools in the area, etc.
A major factor to your property will be its condition. This will definitely be a contribute to how much you can rent your property out for. Things such as amenities that come with your property will also become a key factor. For example, if you are renting a property without a parking space, this may be decrease the price of your property.
Additionally, whether you decide to rent a furnished or unfurnished property will affect the price.
The Open Rent Calculator
As mentioned, a great tool to use is the Open Rent calculator. To receive an estimation, all you need to type in is your property’s postcode, type, address and how many bathrooms/bedrooms it possesses. From all this information, an estimation will be created on how much you could charge on your rental property. The calculator does take into consideration property’s around the area and the current market.
Can Letting Agents Help Me?
Another more traditional route to understanding how much you could rent your property for is using a letting agent. They will be able to advertise your property for you also and help you with any legal aspects, offers, viewings and so on.
How Much Would Letting Agents Charge To Rent?
Generally, an estate agent will take a tenant fee of around 6-8%. But this can be higher for the capital. With finding a tenant and the rent, the agreements usually cost around the 8-12% mark. But the percentage can increase if you ask for a full management fee.
Before you do decide on any agents, make sure to compare between agents’ fees.