How much rental should you be receiving/paying?
If you currently own an investment property, or perhaps you are looking to lease out a property then the question of rent is one that most people find to be very important. A rental dictates how much and how often a person renting a property (the tenant) must pay to the property owner (the landlord) in exchange for being able to use and occupy the premises .
There are a number of factors which can contribute towards the amount of rent that you are required to pay each month and these can include the location of the property, the type of property, how big the property is and any features or amenities that the property has. In addition, if you are dealing with a commercial property you may also consider the surroundings of the property – is it located in a major shopping centre or just down a side street, and how many people are likely to pass it?
Once you have taken all of these factors into consideration then a rental amount can be reached which is fair to both the landlord and the tenant.
How do I determine the right amount?
One of the most challenging tasks that you will undertake when looking to lease out a property is determining the level of rent that you want to charge and this is normally where you will look to call in the help of the experts. There are a number of factors that you need to take into consideration before you make a decision on the amount of rent that you are looking to charge:
· Location – the location of your property plays a big role in helping you to determine the value of the rent Amenities – the amenities around the property can also have a big impact on the rental value of your property depending on the type of business wishing to lease your premises
· Size – the size of the property will have a major impact on its rental value
· Demand – the demand for rental properties in your area can either increase or decrease the value of your property, this is driven by fundamental issues such as the economic cycle and also the state of those business sectors likely to occupy your premises.
· Condition – the condition of the property will have a significant impact on the rental value. Former tenants should have been maintaining the premises and if you are responsible for common (shared) areas likewise effective use of service charge budgets should ensure the property upkeep.
If you are unsure about how to get started with a rental valuation then a Specialist Team of Chartered Surveyors such as Roger Hannah & Co can help you. For more information, call Mark Keirl today on0161 817 3399 or visit our Lease Advisory Page.