How much rent should I charge?
The rent you charge obviously depends on the type of property, its condition and its location.
Do your research
Always aim to charge a competitive market rent. Do your research to see what similar properties in the area are achieving in rent. A well-presented property charging a fair market rent is likely to rent quicker and for longer than a property that is looking to command the very top end of the rental scale. If your rent is too high you risk having a vacant rental property.
If you are charging a fair market rent (or slightly below) for a well presented property in good condition, then tenants are less likely to move out, there by, minimising the void periods.
Some new landlords make the mistake of overestimating the potential rental income from their property. Your estimation of potential rental income should be determined current rental levels in the market and not how much you need to cover mortgage repayments for example.
How much of a deposit do I look for?
Generally tenants are asked to pay a deposit that equates to one months rent. Larger deposits may be applicable for more expensive properties at the top end of the market, for example corporate lets.
Can I increase the rent?
The Residential Tenancies Act 2004 states that rent may not be greater than the open market rate and may be reviewed (upward or downward) once a year The exception to this is where there has been a substantial change in the nature of the accommodation that warrants a review, for example, refurbishment of the property. Tenants must be given 28 days notice of a change to the rent.
Tenants may ask their landlord to review the rent if they feel it exceeds the market rate for the property. If more than a year has elapsed since the last rent review, tenants may seek a review. Disputes about any aspect of rent may be referred to the PRTB.
Tip: Many landlords will keep rent levels slightly below the market rate for similar properties in order to keep good tenants.