As a landlord, figuring out the optimal rental income for your rental property is crucial for maximising your ROI and attracting new tenants. Several factors are considered when settling rental rates for various properties. Factors such as property location, market demand, and property condition can all have an impact on the amount of rent you could earn. Let’s take a deeper look at the factors that can affect a landlords rental income. 

Tenants unpacking

Location

The location of your rental property is one of the most significant factors affecting possible rental income. Properties that are located in desirable neighbourhoods or areas with high demand will typically have higher rental prices. Whereas those in less desirable locations will have lower rental prices. To give an example, a rental property in a high-end location in London will have a higher rent price than a property located in a less desirable area.

Local amenities and services

Another factor that plays into the quality of the properties location is the local amenities and services nearby. This can refer to the properties proximity to good schools, shops, parks, and other amenities. Properties in locations with good local amenities are often able to command higher rents.

 

Property size and type

The size and type of your property also plays a part in determining a landlords rental income potential. Different types of properties, such as family homes, or flats have varying rental rates. Larger properties with more bedrooms or additional features such as a large garden, parking spaces, ensuite bathrooms tend to get priced at higher rents. Newly built or renovated properties with modern amenities also usually justify higher rental rates compared to older, or less-equipped properties.

Market demand

Understanding the current market demand is so important for landlords looking to get the most out of their rental properties. If there is a high demand for rental properties, and a low supply, landlords may be able to increase their rental rates. However, if there is a low demand, due to oversupply or economic downturns, they may need to lower them to attract new tenants. So, landlords must keep an eye on the local rental market trends.

 

Landlord fixing floor

Property condition and maintenance

The condition of the rental property and the amenities it offers can significantly influence the rental income potential. A well-maintained property with modern or updated amenities such as a refurbished kitchen or built in laundry units tend to attract higher paying tenants and command higher rental rates. Oppositely, properties in poor conditions or lacking necessary amenities may only be able to charge lower rental rates as they may struggle to attract tenants with higher rental payments.

Furnishings and utilities

If you’re renting out a furnished property or a property with included utilities, you may be able to justify higher rental payments. This offers added convenience for the tenants, meaning they may be willing to pay more. However, landlords should still carefully consider the additional costs and responsibilities that are associated with furnishing and providing utilities when settling their rental rates. For example, you may find that the cost of furnishing your property may outweigh the benefits of the increased rental rates.

 

In conclusion, there are several factors that influence the amount of rent that landlords can earn from their rental properties. By considering these factors landlords can set a competitive rate and maximise their rental income.

Here at Cotters Property, we offer landlords in Northampton free rental valuations. Simply head to our rental valuation form, and we’ll send someone out to look at your property and figure out how much rent you could be earning.

Book a free rental valuation today with Cotters Property!

Email us at info@cottersproperty.co.uk.

Excellent service provided by Cotters letting team, in particular Sue and Jo. Kept updated throughout the process and successful in findings tenants within 2 weeks. They shared great tips and knowledge.

Will definitely be using Cotters again.

Abu, Northampton