This week we are working with landlords/ladies and home owners to determine ways of setting up good rent levels regardless of seasons (including in difficult times like of cost of living crisis as it is now).
A good rental yield
If you would like to invest in properties for rental purpose, you will need to find out what is called “rental yield”. The latter is defined in the property jargon as the value of rent you can expect to receive from your property in a year. In other words, a rental yield is the return made on a property investment in terms of monthly rent charged compared to the value or price of the property paid. Generally, it is considered that a rental yield between 5 and 8 per cent is relatively good for a buy-to-let investment.
Getting expert advice about your asking rent
Before issuing a tenancy (for example, an assured short hold tenancy agreement), it is advisable to seek expert advice about the levels of rent that your property can generate. It is important to seek this kind of advice so that you do not charge more or less than what your property really deserves.
There are benefits in seeking expert advice on the rent level. One of these benefits is that it helps to avoid any potential conflicts (such as unpaid rents or rent arrears) with tenants over the level of rent you are charging in the course of the tenancy period.
Where to get rent advice
Rent advice can be obtained from various sources or experts on the rental market. It can be given by a local rent officer, a letting agency, a rent valuation office, etc. You can even get it online through various websites having properties rent valuation features or online rent calculator. Some of these rent services are free of charge without obligations.
Online rental yield calculator
A rent calculator is a rental valuation tool created by a team of data scientists and that enables to find out, in advanced way, how much rent to charge for any house or flat in the UK. Through the online rent calculator, you can enter a property postcode and the calculator will instantly give you the rental value of the property or the average rent by postcode. You can do it to work out the process of determining rental yield as well.
Working with Home Relief to set up a rent policy
This week, what we are undertaking with landlords/ladies is not only fixing a rent for a particular property. It is also trying to develop a rent policy and structure for our clients so that their properties could command a rent level that is fairly good or decent irrespective of seasons (i.e. Winter, Spring, Summer, Autumn, busy, not busy, EU exit, the coronavirus shock, cost of living crisis, etc.). Why?
Reasons for setting up a rent policy or structure
There are various reasons that contribute to a good rent policy or structure. There could be changes in the rental market and the economy with ups and downs. Likewise, your property may not be the same when you last refurbished it.
In the above circumstances, what can you do for your property to command decent rents regardless of seasons, regardless of lows and highs in the rental sector? Landlords/ladies need to bear in mind that each property is a particular case that needs to be treated on its own. There should not be one size fits all rent policy.
What is a good rent in time like of the cost of living crisis?
In time of the cost of living crisis, it is recommendable to check all the facts and get data right and clear before making any decision over the rent. There will always be conflicting stories and messages (including fake news) about the performance of the property market and the way in which the rental market is reacting over this challenging time.
Any decision made over rent has to be based on verifiable statistics rather than commentaries and speculations made by the mass media. For example, there have been various figures and different interpretations of the current and coming rises in the energy price caps.
To get the right decision, each property case has to be treated individually with all the determinant market factors and conditions. This should be done while considering the short, medium and long term changes.
Working with Home Relief to determine your rental value
If you are a landlord/lady and or home owner and would like your property generates a level of rental income that is respectable or very good but you do not know where to start and how to go about it, Home Relief can work with you to determine the better rental value for your property.
To get advice for the better rent level for your property to let, please contact Home Relief NOW.
To know whether this week’s session on A Good Rental Yield can or cannot work for you as a landlord/lady, contact Home Relief NOW!
Looking for an affordable location and home
If you are looking for an affordable location and home, Home Relief is the people dealing with affordable homes you could consider in your property searches and enquiries.