Why Pricing Matters
Price too high and your property sits empty, costing you money every day. Price too low and you leave profit on the table for years. Getting the rent right from the start is essential.
The Cost of Void Periods
Research Your Market
Compare Similar Properties: Search Rightmove and Zoopla for properties similar to yours in: location (same postcode or street), size (bedrooms, bathrooms), type (flat, house, terrace), condition and specification, and included features (parking, garden, furnished).
Note What's Currently Listed: These are asking rents, not necessarily achieved rents. Properties that have been listed for weeks may be overpriced.
Check Rental Indices: HomeLet Rental Index, ONS data, and local reports provide area averages, though your specific property may be above or below average.
Factors That Affect Rent
Location Premium:
- Proximity to transport links
- School catchment areas
- Local amenities (shops, restaurants, gyms)
- Safety and desirability of neighbourhood
- Parking availability
Property Features:
- Number of bedrooms and bathrooms
- Overall size (square footage)
- Outdoor space (garden, balcony)
- Storage space
- Natural light and aspect
Condition and Specification:
- Modern kitchen and bathroom
- Quality of fixtures and fittings
- Energy efficiency (lower bills for tenants)
- Decoration and presentation
- Appliances included
Extras:
- Furnished vs. unfurnished
- Bills included
- Parking space
- Pet-friendly policy
Pricing Strategies
Market Rate: Price in line with comparable properties. This attracts steady interest and lets quickly.
Slight Premium: If your property is superior to competitors — better condition, more features, prime location — you can justify higher rent. But be realistic about what makes your property special.
Competitive Entry: Pricing slightly below market can attract more applicants, letting you choose the best tenant. This works well in slower markets or for properties needing a refresh.
Common Pricing Mistakes
Emotional Pricing: Your property isn't worth more just because you love it or invested heavily in it. Market value is what tenants will pay, not what you think it's worth.
Ignoring the Competition: If identical properties nearby are £100 cheaper, you need a compelling reason for your premium.
Not Adjusting: If you've had no interest after two weeks, the price is probably too high. Reduce before the listing goes stale.
Overvaluing Location: Just because you're near the city centre doesn't mean every tenant wants that. Some prioritise space over location.
Market Rate
Priced in line with comparables. Attracts steady interest and lets quickly.
Slight Premium
Justified by superior condition or features. Be realistic about what makes yours special.
Overpriced
No interest after two weeks? The listing goes stale. Reduce before it's too late.
Rent Review Considerations
When existing tenancies come up for renewal, research current market rates. You can propose an increase, but tenants may leave if the jump is too large. Balanced increases that reflect the market and retain good tenants are usually the best approach.
Haus Estates Rental Valuations
We provide free, no-obligation rental valuations based on current market data and our local expertise. Contact us to find out what your property could achieve.
