If you’ve invested your hard earned cash in a buy to let property, or if you’ve moved house and are renting out your previous home until it’s time to sell, getting the most you can for your investment is a must.
Before you start showing your property to potential buyers, you’ll need to have it valued to see how much it’s worth on the rental market. In some cases, rental valuations can affect your buy to let mortgage, so it’s important you understand exactly what it means.
If you already own your property, it will need to be valued by an agent to see what level of rental income you can expect. The agent will make this valuation based on a number of factors and they’ll need to use their experience and their knowledge of the market when making an estimate.
If you’re purchasing a property with a buy to let mortgage, your lender may want to have the rental income potential valued to ensure you can make your payments every month. These valuations can be done by a surveyor or a professional employed by the bank and will generally be done before the final mortgage offer is made.
The location of your property will have a big impact on its rental value. If it’s close to good schools, good transport links and amenities, the value will be higher, whereas properties that are in less desirable areas and difficult to reach by public transport will command a lower monthly rental.
The number of bedrooms your property has will have a huge influence on the amount of rental income you can expect to receive. If you’re renting out the property as a House of Multiple Occupancy (HMO), the number of bedrooms you have available to let will become even more important.
If your property has recently undergone a renovation, or if it’s in good overall condition, agents will value it more highly than comparative properties in poor condition. Most good tenants expect a landlord to look after a property, fix structural issues and ensure it’s well maintain inside and out. If your property looks scruffy, not only will its rental valuation be lower, you may also attract tenants who are less likely to keep it in good condition.
Any special features like a balcony, garden, fireplace or conservatory can add value to a rental income. Be sure to list these clearly when marketing your property to ensure tenants know exactly what they’re paying for.