How much rent should I charge tenants in Hull and the East Riding residential properties?
By Helen Everritt, Property Manager
Deciding how much rent to charge tenants is a balancing act.
Charge too much and you can put people off. Even an extra £50 a month can leave your property empty – especially in an area with plenty to choose from.
Set the rent too low and you may not have enough to cover mortgage repayments, insurance and maintenance costs.
New to being a landlord? Thinking about acquiring a buy-to-let property?
Or are you an experienced landlord who’s not familiar with letting out properties in Hull and the East Riding region?
In this article, we discuss the factors to consider before renting out a property so you’ve got a good idea how much you could receive each month.
For impartial and professional advice that’s tailored to your investment, call 01482 566057 for a friendly discussion.
What is the average rent in Hull & East Yorkshire?
The amount of rent you can charge in Hull and the East Riding varies massively. Usually, it’s dependent on two main factors: the type of property and the area where it’s located.
Rent out a 3-bedroom house that’s close to a good school, like Malet Lambert in east Hull or St Mary’s in the Avenues area, and you’ll almost certainly be able to ask for more rent. The same applies in Beverley, where the Grammar School and High School have excellent reputations.
There are of course simple steps you can take to assess the market, such as doing a bit of research on platforms like Rightmove or Zoopla to see if there are similar properties being advertised to let at the time. There are also plenty of online rental calculators that will give you a good idea of the average rents being charged, based on your property’s postcode.
However, our experience has told us that each and every property is different, and aspects such as the quality of kitchens, bathrooms, and more so than ever these days, gardens, can be the details which allow you to seek a little more rental income that other properties close by.
The 7 biggest factors affecting rental value
As you’d expect, the amount of rent you can charge tenants depends on several different factors – and below we have highlighted seven we believe have the biggest impact:
Property size and features
The bigger your property, the more you can expect to charge in rent. The same goes for more bedrooms – the more you have, the more people expect to pay each month. Do you have a property with a room which could be transformed into an extra bedroom? If so a small investment could bring significant annual reward.
Condition – is it well maintained and decorated?
It’s not rocket science, but people will pay more for a property that’s nicely decorated and well maintained. We advise many of our landlords on simple décor changes which make the difference between a property standing empty on the market for months to wowing viewers and potential tenants.
Location – who does it appeal to?
The more desirable, the more you can charge. In our region, a four-bedroom house in Beverley or Kirk Ella will rent out for more than the same size house in Hull, but if you own smaller properties or apartments and flats close to Hull University or the city centre, demand may be higher and the properties easier to let at a lesser rate. Speak to our team about your property portfolio and your ambitions to identify the best spots for you.
Amenities – what’s nearby for tenants?
If you’re close to a good school, it can have a positive impact on the rental value you can achieve. The same can sometimes be said for a nice village pub or local shop. Good transport links can also be a positive – does your property boast easy travel times into the city for work and leisure? All of these can make a property more appealing.
Parking – does it have its own drive or dedicated spot?
Having access to private parking can sometimes be a deal breaker. As a rule of thumb, it adds extra to the rent you are able to demand.
Furnished or unfurnished?
As a general rule, the more you provide, the more you can charge, but be warned, furnished properties can cost a landlord more in the long run if items break and need replacing.
A lot depends on the type of tenant you want to attract. Young professionals may pay more for a stylish finish with well-maintained furniture and appliances.
On the other hand, families tend to have their own furniture, so they might prefer a part-furnished property. Our team will advise landlords in this area.
Pet friendly?
It’s often easy to overlook people’s affection for pets. Lots of landlords don’t allow them. If you do, it’s perfectly reasonable to charge more rent.
How do we set the rental value of a property?
In most cases, we can tell you exactly how much rental your property could achieve per calendar month (as they say on Homes Under the Hammer) in a matter of minutes.
That’s because every member of our specialist team has a detailed understanding of the lettings market in Hull and throughout East Yorkshire.
However, we wouldn’t place your property on the market until we have conducted a FREE and comprehensive evaluation, and advised you as to whether we feel you could make changes to improve the rental price.
Once this has been completed, and current market conditions have been into account, we can advise you about the best rental value we think you can achieve.
Whilst the amount you could receive each month depends on the property type and other factors outlined above, the professional landlords on our books typically enjoy an annual yield of between six to eight per cent in Hull and the East Riding.
To help our clients maximise their returns, we frequently issue advice about improvements which could be made to qualify for a rent rise. Adding an additional bathroom facility or professionally landscaping a garden are simple enhancements which often reap a significant return.
For landlords who don’t have time to stay on top of current market conditions, we also factor in regular rent reviews so that missed opportunities don’t prove costly.
If you’d like to benefit from this level of service, or you’re unhappy with the letting agent that’s currently managing your portfolio, call 01482 566057 – we’ll be happy to discuss your requirements in confidence.
