May 26, 2026

Is this the right rental price for my property?

One of the key questions for any landlord is whether they are charging the right amount of rent. Too high and you might struggle to fill the property, leading to a costly void period. Too low and your rental yield will fall, lowering your overall returns.

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How to manage this fine balance can be a tricky question with many factors to consider. Read on to learn more about how to set the right rental price for your property in 2026.

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What to consider when setting a rental price

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There are several key factors to think about when setting your rental price:

The property itself – How big is the property? How many bedrooms does it have? Does it come with private space? Are the appliances modern? Has it been decorated recently? Is it an apartment or a house? Those are just some of the things you will need to consider. For example, a run-down property with older white goods will not command the same rent as a freshly decorated, well-maintained and newly appointed property next door.
Location – Just as important is the location. Local transport links, access to green space, views over water and good retail options are likely to raise the price you can charge. Similarly, if the local area has good amenities and services, that can be reflected in the rent.
Demand type and tenant profile – You will need to carry out research to understand the local demand. For example, if you are letting a premium city centre apartment, you will be appealing to a different demographic than if you were letting a suburban terraced home. Each type of renter will have different budgets, so understanding the type of demand for your property is key.
Local rents – A good guide for rental value can be other local properties of a similar type. If you are letting a two-bed city centre apartment, you are unlikely to be able to charge significantly more than other similar properties in the area unless yours has an additional outstanding feature.

Researching the above factors can make the difference when choosing a rental value for your property. Perhaps most importantly, you need to keep doing the research even after you have let the property.

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Rent review time will come around faster than you think, and you will need to understand how the market has changed since the initial let if you want to keep your rents competitive and profitable.

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Legal restrictions on the rental value you can charge

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While you can theoretically set whatever rent you want, demand and supply mean that you won’t let your property if it is too high. Furthermore, if you raise the rent too high during an existing tenancy, you may also create a problem for yourself.

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The Rent Act 1977 allows tenants to challenge rent rises they feel are excessive or unfair. They can do this on the basis of rent comparisons with other similar local apartments or with national average rent rises if there is a substantial difference. The law also allows tenants to raise a legal challenge if they raise rents too frequently.

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How to avoid legal challenges while still maintaining rental yields

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That sounds like it could create a problem for landlords who are trying to charge the find the right rental price for their property. However, there is a simple solution: appoint a professional lettings and management agent to do it for you.

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An agent will know exactly the right rent for your property based on their experience of the local market. They will be able to set a price that is competitive, profitable and not excessive. That will allow you to maintain profitability without triggering any legal issues.

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Best of all, they do it on your behalf and save you all the work of researching rents, advertising the property, carrying out viewings and much more.

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Want to find the right rental price for your property? Contact our team today to get started.