How much rent can I charge for my property?

The right rent is the highest figure a good tenant will pay without the property sitting empty. Set it too high and you lose more in empty weeks than you gain each month. Set it too low and you give money away for the whole tenancy, because rent can then only rise once a year.

Start with what similar homes actually let for

The best guide is what comparable properties nearby have recently let for, not what they're advertised at. Look for homes with the same number of bedrooms, in a similar condition, within walking distance of yours. Property portals show asking rents; a local letting agent will know the rents that were actually agreed, which are often a little lower.

What pushes the figure up or down

• Location and transport. A short walk to a station, especially on the Elizabeth line or a fast line into London, makes a noticeable difference.
• Size and layout. Bedrooms count most, but a second bathroom or a separate living room adds value, particularly for sharers.
• Condition. A modern kitchen and bathroom and fresh decoration let faster and for more.
• Outside space and parking. Both are in short supply in London and add to the rent.
• Energy efficiency. Tenants pay the bills, so a better EPC rating is increasingly something they ask about.
• Furnished or unfurnished. This depends on the area and the tenant; ask what local demand looks like before you buy furniture.

Check that tenants can afford it

Many referencing companies look for a household income of around 30 times the monthly rent. For a rent of £1,500 a month, that means an income of about £45,000 a year, or a guarantor. If your rent is above what most local tenants can pass referencing for, you'll have fewer applicants to choose from.

The real cost of pricing too high

One empty month costs you about 8% of a year's rent. Asking £100 a month too much and waiting an extra month to let costs more than the extra £100 would have earned in a year. It's usually better to price at the market and let quickly to a well-referenced tenant.

Work out your yield

Gross yield is the annual rent divided by the property's value. A flat worth £320,000 let for £1,600 a month earns £19,200 a year, a gross yield of 6%. Net yield takes off your costs, such as mortgage interest, agent fees, insurance, repairs and certificates, and is the figure that tells you whether letting is still worth it.

Get a figure for your property

A rent valuation from an agent who lets property in your area is free. You can also ask for a guaranteed rent figure at the same time and compare the two.

General information for landlords in England, not legal or tax advice. Last checked 12 October 2026.

More landlord guides

• Guaranteed rent explained: how it works and who it suits
• Full management, part management or tenant find?
• Renters' Rights Act: what landlords in England need to know
• How much do letting agents charge landlords?
• Common landlord questions, answered