- Start by checking property rental portals like Rightmove or Zoopla and select the option to ‘Include Let Agreed’ properties to see what renters are willing to pay for comparable properties in the same area.
- Focus on properties similar to your prospective rental property in terms of type, bedrooms, features, and condition.
- Consider using tools like Lendlord’s Buy to Let Deal Analyser for estimated monthly rent, but also supplement it with your calculations based on property condition and features.
Running the numbers on a potential rental property is key to ensuring a successful (and hopefully stress-free) investment. To be able to do so, you need to have accurate rental figures. In this guide, we’ll walk you through the process of determining how much rent to charge, so you can make informed decisions about which rental properties you purchase.
Determining Market Rent for Your Property
1. Start by heading over to property rental portals like Rightmove or Zoopla.
2. If you have the address of the property, you’re ahead of the game. If not, follow our guide on finding a property’s full address. Knowing the exact postcode is essential for accurate calculations.
3. Ensure you select the option to ‘Include Let Agreed’ properties in your search. This will include properties that have been let out, thus giving you concrete figures for what renters are willing to pay.
4. Focus on properties that closely resemble your prospective property. Consider factors such as property type, number of bedrooms, features, and the condition (or the condition you intend to refurbish your property to).
5. Note down the rents achieved by properties that are marked as ‘let agreed’ and are comparable to your prospective property.
6. If you have multiple comparables, choose the ones that are closest – ideally one on the same street. Calculate the average of these values.
Rent Estimation Tools
A great feature of the buy to let deal analyser is that it can provide you with an estimated monthly rent based on the information you provide it – this feature does require you to create a free Lendlord account. I’ve found that they’re estimates are pretty good as they use the same data that we looked through earlier.
However, it may not take into account the condition and special features of properties, so whilst it’s a fantastic tool that I’d highly recommend, it should be used as a supplement for your own calculation.
By diligently researching comparable properties and utilising tools like Lendlord’s Buy to Let Deal Analyser, you’ll be equipped with accurate rental figures to make informed decisions.
If not quite sure how to analyse a potential investment property, check out the following guides: