June 25, 2026

How to calculate your property’s rental price correctly

Getting the right rental price is an important part of being a landlord. Too high and you may put people off renting your property, running the risk of costly void periods. Too low and you’ll have no trouble finding a tenant, but your returns will suffer.

Here’s our guide to calculating the right rental price for your property.

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Understand the limits of what you can do

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The higher the rent, the better for the landlord, right? In theory, yes, but in reality, you can’t set it too high. The Rent Act 1977 restricts landlords from charging more than ‘fair rent’ for a property. Tenants have a legal right to challenge any rent deemed unfair. This can lead to fines and reputational issues, which affect your returns.

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Once you have a tenant in place, there are also restrictions on how you can raise rents. You will need to use a Section 13 agreement and give at least two months’ notice of any rises as per the Renter’s Rights Act 2026. Any rises can also be challenged if they are deemed unfair.

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But what determines ‘fair rent’? The factors are the same things you need to consider when setting rent in the first place. These include…

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Is the property fitted and furnished?

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If the property is furnished, you can generally charge a higher level of rent. Not all furnishings are equal, so think about:

How new the furnishings are
The quality of the furnishings
Have you provided everything a tenant needs?
Will the tenant need to buy some of their own furnishings to supplement it?
Have you provided white goods?
Are the appliances new or old?

All of those can affect the rent. In general, the newer and better the furnishings, the more you will be able to charge.

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Has the property been decorated recently?

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The better and newer the décor, the higher rent you can justify. It’s about creating a living space that feels fresh and positive rather than tired and old. Many landlords don’t decorate often enough, and it can have a real impact on your returns. If you want to set a higher rent, you should…

Repaint the property following a tenancy
Ensure any carpets and floors are clean and undamaged
Replace outdated or damaged materials like curtains
Go for warm, neutral colours that appeal to the broadest possible range of renters

Another benefit of decorating is that you will have a stronger position in the event of a future deposit protection dispute.

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Is the property in a good state of repair?

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Nobody wants to rent a property which looks like it is falling apart – especially if the rent you are asking for is high. Landlords should always take care of any repair and maintenance issues as part of a rent setting exercise. Recommended actions are:

Go through and complete any snagging
Repair any damage from leaks
Ensure heating and electrical systems are up to date

The better the repair the property is in, the higher rent you can fairly charge.

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What are other nearby properties renting at right now?

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Looking around at what other properties are charging is a key part of calculating a fair rent. You should look at properties which are…

Of a similar size and layout
In a nearby comparable location, preferably in the same building
In a similar condition to yours
Close to similar amenities and transport links

You should aim to charge a similar rent to these properties to ensure you are maximising your returns and protected against claims that your rent is unfair.

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What’s coming up in the local area?

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Finally, make sure you look at what is coming to the local area. When setting rent, you can justify higher prices if there are big improvements coming close by, such as:

New and/or improved transport links
Better shops, bars and restaurants
New retail centres
Cultural developments
New parks or other green spaces
New gyms and leisure opportunities
Office or other business developments
A new masterplan development has been announced

These are all things which renters will pay more for, and most importantly, justify landlords charging higher rents. When calculating the rent on your property, make sure to look at the future as well as the present.

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Have it all done for you by a letting agent?

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The number one tip is to appoint a professional letting agent to do it all for you. These are professionals with local expertise who will already have databases of information to use when calculating the perfect rent for your property. Learn more by contacting our team today.

Arrange a call with our team today.

Contact us today regarding all property management and lettings enquires.

0161 388 7848

contact@northbankresidential.com

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