Rental demand still outstrips supply in the UK, and your property is unique, which is why it’s important to understand its true rental value. Average rents for new lets increased by 12.2% in the year to September 2023, and are expected to increase by 5–6% in 2024.*

Why should you get a rental valuation?
As a new or existing landlord, you want to keep clued up with the market and benefit from a good rental valuation. Determining accurately how much rent to charge optimises your investment and creates a balance between maximising property income without overcharging tenants. This attracts long-term tenants who are prepared to pay fair prices, which guarantees a good return on investment. It can also support landlords in adhering to regulatory requirements. A good agent can advise you on how much rent to charge, enabling you to budget for the upkeep and improvements of your property. This keeps your buy-to-let property competitive in the rental market and makes for a better tenant-landlord relationship.

Things to consider when determining your property’s rental valuation:

Tenants
A good agent will figure out which sector of the market best suits your property. Perhaps you have already decided that you are aiming at the young professional, student, or retirement markets, or have you created an ideal family home? If you have not decorated yet or your property needs improvement, your agent will be best placed to advise you.

Demand
Understanding the true rental value of your property is intrinsically linked to levels of demand. Agents utilise databases and years of knowledge of the property market to understand the scale of demand for your property. This will be pivotal in understanding your investment.

Your property’s location 
The location of your property is influential; however, it's not all about the postcode. Sought-after and up-and-coming areas will add value. Proximity to transport links and good schools is ideal for families. Located in a beautiful rural area, or an inner-city location, shops and other amenities also play a part in adding to your property’s rental valuation.

Is your property furnished or unfurnished?
Is your property unfurnished, partially furnished, or fully furnished? A fully furnished property could command a higher rent. Having said that, providing a property without furniture does not put you at a disadvantage, and you will not be responsible for the upkeep of any furniture or appliances that you do not own.

The condition of your property
Needless to say, if your property is in good condition or has been recently refurbished, then it will be more desirable to tenants and will affect how much rent you can charge. A good agent will also be able to advise you on where to spend on alterations, if that is something on your to-do list.

What do you need to prepare for a rental valuation?
Making your property presentable and in good order and having all the right paperwork to hand, such as gas safety certificates or deeds, is always a good idea. If your property needs painting, re-decorating, and decluttering, it helps to carry this out before you have it valued. After that, your agent will do the rest. In fact, with a fully managed service, your agent’s maintenance team may be able to prepare your property to let, depending on the work that needs to be carried out.

Investing in multiple-occupancy homes (HMOs) can be a great way of increasing yields, making them very attractive investment opportunities for landlords. Although the potential return on investment is greater when letting HMOs, they do require slightly more management than single lets, so here is a guide to help you through the process.

What is a multiple-occupancy home?
An HMO is a property with at least three people from more than one household who share basic facilities such as a kitchen, a bathroom, and a living space. HMOs can take many different forms, including large homes that have been converted into several self-contained flats with shared amenities, properties with separate bedrooms and shared common areas, and accommodations purpose-built for multiple residents. Properties with five or more tenants are considered large HMOs.

What licences are needed for HMOs?
It is mandatory for all large HMOs to have a licence, and landlords must use their local council’s application process to apply for it. HMO licences outline the maximum number of people that can live at a residence and will state the date on which the licence needs renewing. Smaller HMOs usually do not need to be licenced unless the local council believes the area’s HMOs are being mismanaged. Licences typically cost between £700 and £1000, but the high profitability of HMOs should result in a strong return on investment in no time.

How to manage an HMO
There is quite a considerable difference between managing a single tenant and managing an HMO. But there is no need to worry, as there is plenty of help available to landlords looking to invest in HMOs, especially from letting agents. They can help with tenant acquisition and screening to make sure there is a steady flow of tenants, even if there is a high turnover rate. Your letting agent can also help you draft a tenancy agreement, which is a slightly more complex task due to the extra regulations involved in letting an HMO. 

Steady flow of tenants
With several tenants in each property paying their own rent, you multiply your income stream, therefore increasing your return on investment. Even if one room becomes vacant for any reason, you will still receive income from the other tenants. In a single let, your property could remain vacant for a period of time, but this is less likely to happen in a HMO.

Increasing opportunities
Over the previous two years, the overall number of HMOs has fallen by 4.1%, leading to an increase in opportunities for landlords.* HMOs attract a range of different demographics, such as students, young professionals, and people new to the local area. For tenants, living in an HMO can be a cost-effective way of finding a home, as the rent is shared between multiple people.

Overall, despite the additional management and licencing required, letting HMOs is a great way to increase your return on investment as a landlord. With a continuous flow of tenants and increasing opportunities in the market, HMOs are low-risk investments that can produce high yields. With support from a letting agent, investing in HMOs is a very attractive proposition for landlords.