Deciding how much rent to ask for is one of the most important decisions a Landlord needs to make when putting their property onto the market.

Ask for too little rent and your investment will be under performing and ask too much and you risk not having a sufficient choice of Tenants and having a void period on your property which will greatly reduce your return.

It is a good idea to do some research yourself online to see the sort of rents being asked for similar types of property and comparing the available properties to your own one. It is also worth remembering that just because a property is being advertised at a certain rent does not mean that this is what it will be rented for as there will always be some properties that are marketed at unrealistic prices.

Many people will want to take advice from a Letting Agent as to the rental value of their property but as with any industry there are both good and bad practitioners. Some Agents are notorious for offering very high rent valuations in an attempt to impress a Landlord enough to be instructed to market the property as well as using this high figure as a way of justifying their equally high fees. There are also other Agents who would offer a very low valuation as this way they know they will be able to easily ‘let’ the property without much effort. When receiving valuations from Agents it is important to ask for details of other similar properties that they have ‘let’ in order to support their valuation. Indeed a good Agent will usually be able to provide printed details of other nearby properties that they have recently ‘let’ in order to explain why they have arrived at their valuation.

The majority of rental properties are ‘let’ for the full asking price so it is advisable to advertise the property for the rent that you expect to receive rather than marketing it at a higher figure and expecting to have to take an offer. The best course of action is to market the property for a very good competitive rent but ensure that it is set at a level that will generate interest from potential Tenants. It is also worth remembering that just as important as the amount of rent achieved is when the potential Tenants are able to move in as the key to generating a good return from your property investment is limiting any void periods. Finally, never compromise on the quality of the Tenants just because you are swayed by a good rent being offered as bad Tenants will cost you significant amounts of time and money.

A Professional Letting Agent who takes the time to prepare good quality details, markets their properties widely and negotiates skilfully with potential Tenants will be able to achieve very good rents and will generally be able to achieve a higher rent then an individual Landlord marketing a property themselves. Ultimately though every property has a rental value and although it is tempting to be swayed by high valuations it is important to consider how realistic these are and whether or not they can be supported be evidence, as an empty property is not going to provide any sort of return. Another point to consider is that if an Agent is exaggerating the sort of rent you are able to achieve then would you really be able to trust their word when they are advising you on the suitability of potential Tenants?