Of course, the amount you’ll be able to let the property for depends on a number of factors, including the type of property, its indoor and outdoor condition and the demand for rental property in your area. Our valuation tool is a great starting point to help you estimate rental values, figure out whether the rent is likely to cover your costs, and understand if the property might be a worthwhile investment.
How is the rental value of my property calculated?
Our online rental valuation calculator is based on current rental prices sourced from industry data, so it’s reliably accurate. One thing we would say is that it’s also very much worth getting a professional valuation from your local lettings agent, who can apply their own local expertise and knowledge to further refine a rental price.
When deciding the rental value of your property, you’ll need to make sure that the rent you charge will not only cover your buy-to-let mortgage repayments if applicable, but also that it covers your other costs such as maintenance, insurance and any potential agent fees. If you need to factor in property financing, buy-to-let mortgage lenders will usually want the rent you charge to cover at least 125% of the mortgage payments. You can read more about buy-to-let mortgages here.
Should you price your rent above or below the valuation guide price?
The valuation gives an estimate of what your property could let for. If you opt for the expert valuation, you can ask the agent as many questions as you like, as this one is in-person. The thing to bear in mind is, the more realistic your rent, the more tenant interest you'll receive and the more choice in tenants that you will have. Some good questions to think about when renting a property, and to ask at your expert valuation, are: 'What's the highest price my property could let out for?' and 'What price will generate the most interest in my property?'. These will be different values, giving you a range to think about when it comes to setting the initial price. An agent can help guide you on the start price.
5 tips to getting the right price for your property
To help you achieve the best possible price, we recommend grabbing a 60-second valuation of your property. This will give you a great indication of what you can rent out for. Also think about the following as a landlord action list:
- Carry out any essential maintenance or any smaller and cost-effective upgrades that could make the property more attractive to potential tenants. For example, you may consider draught proofing the windows and doors, getting a smart meter, upgrading an old boiler, or adding insulation to improve the property’s EPC rating. All of these options could make the home more attractive to potential tenants and increase your property’s perceived value.
- If letting a furnished property or repainting your rental property, opt for neutral colours for walls and furnishings. Having neutral tones makes it easier for the potential tenants to imagine themselves living there as they adapt it to make it their own.
- Check that you, as a landlord, have all the necessary and up-to-date documentation for letting your property. You can learn about what’s needed here.
- Use our online rental valuation calculator and talk to one of our local lettings experts to determine how much you can let your property for.
- Take advantage of our lettings service to ensure you’re getting the most out of your let, with the least amount of stress.
