While being a landlord can be lucrative, it isn’t an easy role. You have a lot of big decisions to make, and it is understandable many landlords need assistance. We aim to help you make an informed decision or decisions on matters such as rent, no matter your situation.
We know setting a rental fee is hugely important for landlords, and if you need guidance in this area, you are not alone. The question of how much rent should I charge is a familiar one for landlords, and it is one our clients ask us. We know it would be great to receive a high rental fee, but in today’s competitive market, this isn’t always possible.
Tenants are savvy regarding rent options these days
Tenants are savvy, and they research their options. If you overprice your rental property in comparison with other homes in the local area, it is likely you won’t generate much interest in your rental property.
You may think a small rental fee increase doesn’t matter much, but to tenants, it can be a lot of money. When your finances are pushed to the limits, an extra £10 or £15 a month adds up. Don’t forget that an additional £10 a month is equal to an extra £120 a year, and for many people right now, this is a lot of money.
How does your rental property compare to local options?
It is helpful to consider the local market, and what rental fees are in place right now. You should look at the average rental fee for your type of home in your area, but this doesn’t mean you should charge this fee. You should know how your property compares with the average rental properties in the area.
If your rental accommodation is better than the average rental home, you can justify charging a more significant rental fee. If your rental accommodation isn’t up to the standard of the average rental fee, you should look to charge a lower rental fee for your accommodation.
The condition of your home, the size of your home and the number of bedrooms on offer are important factors to consider when setting a rental fee. However, there are also factors outside of your control when it comes to the rental fee tenants are happy to pay.
- You need to consider the following aspects when setting a rental fee:
- Your location, and the availability of facilities and amenities nearby
- Your location, and the demand for rental property in this area
- Your location, and the supply of rental homes in your area
- Whether the property is furnished or not
All these factors influence the right price for your rental fee, and if you need help in determining the best rental price for your needs, you are not alone.
At Williams of Petersfield, we are pleased to say we know the local rental market. Our knowledge and guidance provide you with insight, which helps you make an informed decision regarding your rental fee. If you are a landlord looking for help to serve your tenants, contact us today, and we’ll be happy to help.