Are you looking to rent out your property? It may be a great decision, especially if you are opposed to selling and need a tenant to help pay off your mortgage. But there is a lot that goes into giving your home out to rent – it’s not easy being a landlord especially if you have difficult tenants. Other issues include fixing up every leaky tap and floorboard before people move in and once they do, have the flexibility to come help whenever they need it.
For all this and more, it is important to charge the right rental amount for your property so you are covered. This will also attract ‘better’ tenants who can afford to look after the home. So how do you decide how much rent to charge?
Gumtree has some tips and tricks just for you:
- Current worth: Use an online tool or home appraiser to determine the actual value of your home currently. The rent will, therefore, be a percentage of this value.
- Mortgage: The rent you charge can also be equal to the cost of your mortgage bill every month.
- What are you offering: Tenants need more than just a home. Your rent must be based on other amenities including safety, convenient parking, refurbishment, location, ample cupboard space etc.
- Size: It goes without saying – a large penthouse and a smaller apartment in the same building will not be the same price. Size matters!
- Market trends: Keep an eye out for the changes in the rental market around you including urbanisation, globalisation, tech progress etc. You may have to adjust your rental amount accordingly.
We’d strongly suggest that you do a simple Gumtree search of the available rental properties in your area, to compare your property to, before placing an ad.