When renting out a property you need to be able to maximise your profits while also being fair towards prospective tenants. If you charge rents that are too high, you are likely to put people off which can make it difficult for you to find good tenants. We’ve rounded up a list of factors you should take into account when deciding how much to charge your tenants with in order get the most out of your property investment.
Location is essential
The location of your property is one of the key considerations when it comes to working out how much rent you should charge. The city and county where your property is located will determine its price range while its specific location within the town itself is crucial to set its precise rental value. Being close to major transport links, local amenities as well as to good universities and schools can be a huge bonus when it comes to setting up your rental price too.
The more space, the better
The more floor space your property has, the more you can charge for it. However, you need to make sure to contextualise size within the area where your property is situated. For example, what usually counts as a lot of square feet in the middle of Mayfair may appear as quite small in North Yorkshire. The number of bedrooms your property has can also have a big impact on its rental price – especially if your property is located in a city centre. A massive two-bedroom flat situated in an area without many large apartments could cost more than a small three-bedroom one in the same area.
Make sure to showcase any additional features that your property may have. If your property comes with a large garden, a spacious balcony, a garage or even access to an on-site gymnasium, it can have a positive influence on its rental price. If you decide to charge a little more because of these special features, you need to make sure to include them in the description of your property. Otherwise, your house will just seem overpriced and you are likely to get fewer enquiries.
Furniture to add value
Furnished properties cost usually more than unfurnished ones. Make sure to keep this in mind if you are comparing house prices in your area. If you know that the furnishings in your property are modern and particularly desirable or cost quite a lot of money, you might want to raise your rent accordingly. Modern furniture is a huge selling point when it comes to how potential tenants will perceive your property.
Utilities included for a fair price
There is no set rule saying whether or not you should include utilities in the rental price of your property. The choice is entirely up to you, but making an all-inclusive deal will not only be more comfortable for your tenants to have only one payment to be made every month but it will also protect you from situations in which bad tenants fail to pay utility bills during their tenancy.
Adjusting is key
Once your rent is set it’s important that you keep in mind that the amount isn’t set in stone and can be adjusted over time. To maximize the profits from your buy-to-let property, you should consider re-evaluating your rental price at every lease expiration. Make sure to also check rental prices in the area as they will inform you of what other landlords are asking for when it comes to similar properties in the neighbourhood.
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