Perhaps you’ve bought your first investment property and you’re getting ready to start casting the net for your first tenant. Or perhaps you already have a tenant installed in your property but you’re not sure if the rent they’re paying is realistic in line with the current market value of the property. When your rent is too low, you may find that your profit margin suffers after you’ve paid the mortgage, service charges (if it’s an apartment or other leasehold property), agency fees, maintenance costs and all other sundry expenses. On the other hand, crank the rent up too high and you could lose a perfectly good tenant and risk the property lying empty for weeks or even months while you find a new one. Now, who said that being a landlord was “passive income”?
This is exactly why market rental assessments are such an essential service. Here we’ll take a close look at what market rental assessments are, and why you need one…
What are market rental assessments?
In its simplest terms, a rental assessment is a service that an appraiser or letting agent carries out to determine the accurate rental market value of a property. It helps landlords to determine a fair, realistic and profitable rental price for their property.
What goes into a rental assessment?
A rental assessment uses a number of contributing factors to determine the accurate market rental price of your property. These include;
- The location of the property
- The condition of the property
- Floor area
- Number of bedrooms
- Number of bathrooms
- Your maximum tenants / tenancy length
- On-site amenities like garden, parking, fireplace etc.
- Whether or not you intend to have bills included
Why do you need a rental assessment?
A rental assessment is not a legal requirement. However, it is strongly recommended for landlords who want to ensure that tenants pay a fair and accurate price. Rental cost is something of a balancing act, especially when you’re seeking to occupy your rental property for the first time. Aim too high and it could take you a long time to find a tenant. Alternatively, aim too low and, as discussed above you may find that your profit margins are too low to be tenable. And while being a landlord is many things, it is first and foremost a business like any other.
Other businesses aren’t afraid of charging their clientele the going market value for their goods. You shouldn’t be either!
How we can help
We will be delighted to carry out a rental assessment on your property for you, either as a one-off or completely FREE when you choose one of our comprehensive landlord packages. We offer flexible solutions depending on your needs and budget;
- Let only
- Let only- comprehensive
- Fully managed
Which solution is best for you depends entirely on how “hands on” you want to be as a landlord. Whichever solution you choose, we will carry out a FREE rent assessment, draw up a tenancy agreement so you can be sure your tenancy gets off to the best possible start and even set up your standing orders for rental payments.
Click here to get to know us a little better.