How Do I Set The Right Price For My Rental Property?
Investing in a rental property can be a great decision if you are looking for short term income and long term capital appreciation. However, once you’ve secured yourself a rental home, the next step is to find tenants to live there. Attracting tenants starts with the price you charge per month for rent. It is important to keep certain things in mind when setting the price for your rental property to ensure you and your tenants are getting a fair deal.
In this guide, we’re looking at how to find out how to set the right price for your rental property.
Don’t set your rent too high
Setting the rent too high will see fewer interested renters, especially if it is similar to other properties in the area but much more expensive. Tenants want to get the best deal for their money, so whilst setting a higher rent may be tempting in the short term, it is not the best way to go about things for the long term investment. It may take just £25 extra a month to put a tenant off and leave you with an empty property.
Research the rental market
Doing your research is a great way to understand how to set the rental price. Take a look at some property portals and assess the prices being charged for similar properties. Also, have a look at properties to rent in the area so you can get an idea of the prices being set in close proximity to your rental property. The best way to do this is to head to Rightmove, Zoopla or the Mashroom website to have a browse.
Speak to rental professionals
Speak to industry professionals when deciding what price to set your rent. While you can do plenty of research yourself, it is never a bad idea to get the opinion and guidance from someone who works in the rental industry. You can get in touch with professionals at Mashroom, who will help you to make the most informed decision possible.
Use a rental calculator
Another way to help you set the right level of rent is to use a rental calculator. This is a fuss-free way to help you get an idea of the rent you could be charging, and a great place to start.
Ensuring you set the correct rent for your rental property will make your own and your tenants lives much easier. You will attract a lot more attention to your property with the correct rent and tenants will get a fair deal. It’s a win-win for everyone involved.