This is always the conundrum of charging the right amount to ensure all bills are met leaving a profit for you as against charging too much and leaving the property empty without a tenant.
This means you would have to find the monthly mortgage payment and the council tax charge.
There is a minimum rent shown for each type of property by district on every council’s web site and this is known as the LHA or Local Housing Authority rates and these are set each year by the government from data collected.
These are very general figures, but when you are doing your initial calculations for suitability, these are the numbers you should use as they “stress test” that the property will work even at these lowest numbers.
Then you need to check the active rents for your area both by postcode and by street name on both the RightMove and OpenRent web sites.
This will show you what the local agents are currently charging for similar properties in your particular area.
By now, you will have a full understanding of what existing properties are achieving for rental income, but your property has just been fully refurbished and is in pristine condition.
Therefore, you should take advantage of this position and look to charge a small first-let “premium” above the norm.
We find this rent strategy works well with our tenants and ensures they are happy in the property and will stay your tenants for a long period.
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