There’s no golden rule when it comes to rental prices in Birmingham. Whether you want to invest in a family home in the Birmingham suburbs or multiple student accommodation apartments in the heart of the city, you first need someone to rent them to. That means charging a fair price while still seeing a return on your investment. It can be difficult to know where to start. You don’t want to charge too much or too little, but how do you find the rental sweet spot?
There are obvious factors such as the rental property’s location, size, condition, and the number of bedrooms, but to really know how much to charge, you need to do some research.
Find The Value of Similar Properties
You can get a good idea of the market value by searching for similar properties including area and condition. You can easily find the rental prices of properties by looking online on sites such as Rightmove or Zoopla, or the old fashioned way in the local newspaper. Take a walk through the local town and look in estate agent windows and ask them for information on the local rental market. Prosperity Wealth has a great deal of experience in rental properties, and we can support you in charging the right amount.
How Can You Make Your Property Stand Out?
Birmingham is a popular city, so tenants are likely to have other options to choose from. How can you make your property stand out? You need to balance your expectations with the reality of the market. This doesn’t mean lowering the cost of rent, of course. Consider the areas of your property you can improve.
- Furnished or unfurnished? A well-furnished home can justify up to 20% more rent than a similar unfurnished property on the same street. The quality of the appliances matters too.
- A fresh lick of paint can do wonders for a property’s appeal. Think about the face value aesthetics and what you can do to make your property look more appealing.
- The way you market your property matters. Take good quality photos, spell check your listing, and make health and safety a priority.
- Will you be allowing pets on the property?
- Visit the property at different times of the day and at the weekend to give an accurate description to tenants.
Which Areas Are Popular with Renters?
The health of the rental market in the area you buy will influence the amount you can charge. It’s all about location. Birmingham is a popular commuter city, and the public transport links here are great. If your property is close to a train station, it will tick boxes for a lot of people.
Areas like Digbeth are slowly becoming thinner, and rental prices are going up as a result. Property prices are generally lower in Aston, which is popular with students at the nearby University. Harborne is a more affluent area outside of the City centre, with the Birmingham Mail reporting that average rental costs there are £918 PCM.
Use ‘How much rent should I charge?’ Calculators Cautiously
A quick google search will bring up several quick calculators that will tell you how much rent you should charge. However, the answer they give should be taken with a pinch of salt. They work by using algorithms designed to give a general overview and not the specifics of your area or property. While they may give you a ballpark figure, it shouldn’t be a factor in your final decision making. The real-world market is where you need to be looking.
Get In Touch If you are taking the first steps into property investment in Birmingham, we would love to hear from you. We are passionate about property. We work with property investors and financial advisors across the world and can advise on the best rental areas in Birmingham. We can also provide information about up-and-coming developments for a range of investment budgets. Our expert team will help you choose the right rental price in the right location.