This week I wanted to look at the cost of renting a property in and around Melton Mowbray.
Often the average monthly rents reported in the newspapers will consider the rents currently paid by tenants. These days many tenants are staying longer in their rented property and they are paying below market rents. Even if the rents are reviewed each year they do not always keep pace with the rent you could achieve if it came on the market to be re let. Many landlords do not look to increase a rent if they have a good tenant.
Tenants looking to rent a property now also Landlords looking to invest in a property need to know how much rent the property is going to be if it is marketed today.
I looked at two popular examples of a rental property and tracked the rents achieved per calendar month as each sort came up for re let. The first thing I noticed was the rents seemed to stay very steady from around 2008 to 2011, which ties in with the difficult economic times the country was experiencing.
I looked at large 2 bed terrace properties, in good condition with an upstairs bathroom and a small garden. Popular with tenants and investors this type of property has seen a rental increase of around 15% since 2011, they are currently achieving £575 pcm.
The good size 3 bed semi with a garage is always an easy type of property to find a tenant for. These have also seen an increase in rent since 2011 but it is closer to 12% for these properties. They are currently achieving at least £650 pcm.
Of course the rental return always depends on the area and the condition of the property. Keeping a property well maintained will help maximise the rental return you can expect.