So, you’re looking to rent out a room in your house. You’ve updated the décor, bought fresh bedding and checked the Wi-Fi is working well. The only thing left is to decide a fair price for rent – but it isn’t always immediately obvious how much you should charge.
It’s tempting to jump straight to the far end of the scale, charging a premium rate to turn as much profit as possible. Yet independent landlords also need to consider the fact that they are competing against other options in the local area. If you want to attract good tenants, you need to ensure the price is fair, affordable and doesn’t put off the majority of people from getting in touch.
That said, there are certainly a few key factors to consider when deciding how much to rent a room for. Paying attention to the details and wider amenities that you are offering potential tenants is essential if you want to justify charging a more profitable rate. With that in mind, we’ve put together this quick rundown of things to look out for when renting out a room – let’s dive straight in!
Know your competition
The first step for any independent landlord is to assume the role of the tenant and have a look around various rental listings sites and classifieds to see what’s currently out there. This is the quickest way to get a good idea of the type of prices that other landlords in the area are currently charging, and realistically how much you can rent a room for.
Pay close attention to the quality of properties and amenities on offer, and then compare every detail to the room you are preparing to advertise. If you’re advertising a room in London, for instance, there’ll likely be quite a big variance in the type of rooms on offer, so it’s a good idea to check the range of prices available. It’s also worth keeping an eye on any listings that have been sitting online for more than a few weeks as this is a good indication that the price isn’t quite right for what’s being offered.
Shout about every amenity on offer
It’s no big secret that the more services, amenities and benefits you can offer, the more attractive your listing becomes to potential tenants. However, all too often we see landlords who skimp on detail and don’t take the time to advertise every single advantage of choosing their property over all else.
Here are a few valuable goods and amenities that really make a difference in terms of how much you can rent a room for:
- On-site parking
- High-speed internet
- White goods and electronics (flat-screen TV etc.)
- Nearby shops, supermarkets or restaurants
- Concierge or security
Seasonality and students
Many independent landlords intend to target uni students looking for a place to stay during their studies. In which case, it definitely pays to read up on term-time requirements and the various peaks and troughs in demand throughout the year.
One tactic is to offer half-rent during July or August, which encourages students to arrange their accommodation for the following September sooner rather than later. Also, bear in mind that students tend to value certain additions such as a good bedroom desk and office chair, storage space and any bed linen and towels that you can provide. Whether you provide these extras or not will determine how much to rent a room for.