For landlords · 6 min read
How much rent can I charge? A practical pricing guide
Price from evidence, not hope. Find at least three genuinely comparable properties currently advertised in your postcode — same bedroom count, similar condition and furnishing — and price within that range, adjusting for what you offer. Then sanity-check against affordability: most tenants are assessed at gross annual income of around 30 times the monthly rent, so a £1,500 pcm property needs roughly £45,000 of household income. Overpricing is expensive: two weeks empty on a £1,500 property costs £750, which is more than a 5% rent reduction over a whole year.
Frequently asked questions
How do I work out how much rent to charge?
Compare at least three similar properties currently advertised in your immediate area — same bedrooms, similar condition and furnishing — then adjust for what you offer. Sanity-check against local affordability, since tenants are typically assessed at gross income of around 30 times the monthly rent.
Is it better to price high and negotiate?
Usually not. Voids are unrecoverable: two weeks empty on a £1,500 pcm property costs £750, more than a 5% rent reduction sustained across a year. Overpriced listings also attract applicants who cannot pass affordability referencing.
How much income does a tenant need for my rent?
A common referencing benchmark is gross annual income of at least 30 times the monthly rent — about £45,000 for a £1,500 pcm property. Where a guarantor is used, they are normally assessed on a higher multiple.
When can I increase the rent?
Typically at renewal or via the statutory procedure for a periodic tenancy, following the correct notice requirements. Weigh the increase against the risk of losing a reliable tenant — a void plus re-letting costs frequently exceeds the extra rent.
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