Rent Calculator - How much rent should I charge?
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How much rent should I charge my tenants?
If you own a property you’re planning to let out, working out how much rent you should charge your tenants isn’t always easy. It can be especially tricky if you’re just starting out as a landlord, or if you’re renting out a property that’s not been on the market for a long time.
Our monthly rent calculator can give you an idea of the typical rent in your area. Although our rental price calculator serves as a good guide, it’s important to bear in mind that the actual amount you’ll be able to charge will depend on several different factors. For example; is it close to public transport, schools, shops, and parks? The closer you are to amenities, the more your property is likely to appeal to tenants.
You’ll also need to decide whether you’re going to let out the property furnished or unfurnished. If you’re including all appliances and it’s fully furnished, you may be able to charge a slightly higher rent than if you’re letting it completely unfurnished.
As well as checking our rent per month calculator, it’s a good idea to talk to local letting agents to get a feel for the rental market in the area, and to see how much landlords letting out comparable properties are charging.
How is the rental value of my property calculated?
Our rental valuation calculator is based on last known rental prices sourced from industry data and inflation figures but we still recommend getting a professional valuation to use for sale, purchase or letting a property.
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, but also that it covers your other costs such as maintenance, insurance and any agent fees. Buy to Let mortgage lenders will usually want the rent you charge to cover at least 125% of the mortgage payments.
What is the average rental value in my area?
The L&C rental property calculator can give you an idea of how much you should be able to charge based on your address and postcode. You should always do your own research too, asking letting agents about typical rents charged and checking out property websites such as Zoopla and Rightmove can be a good place to start.
And don’t forget you’ll need to arrange a Buy to Let mortgage if you’re planning to rent out a property. You can use our rental mortgage calculator to get an idea of how much you can borrow, then get in touch with our expert advisers for fee free, expert mortgage advice. We’ll support you at every step of the way, from finding the best deal for you, to keeping you updated about your application’s progress.
FAQs
- How do I calculate how much rent to charge?
Our calculator will give you a good idea of how much rent you might be able to charge, but it’s worth doing your own research, too. Look into what the standard rent is in your area, taking into account the types of properties and amenities. A house with a garden, for example, will typically be able to command a higher rental price than a flat in the same area. You can also speak to local letting agents to get a better feel for the local market, particularly if you’re a first-time landlord or are new to the area.
