Getting the Rent Right: Why Rental Pricing Matters More Than Ever for Landlords
Setting the rent for a new tenancy has always been important.
But as the rental market changes and new rules come into force, getting that initial asking rent right is becoming even more important for landlords.
A new rental pricing tool launched by proptech firm nHabit is looking at an interesting part of the equation: not just which properties prospective tenants like, but which ones they reject.
And there is a useful lesson here for landlords.
Good property management starts with good information.
It's not always about the cheapest rent
When a property is advertised, it's easy to focus on one number:
The monthly rent.
But prospective tenants don't necessarily make decisions based on price alone.
The article highlights factors including:
- Location
- Property quality
- Transport connections
- Longer-term affordability
- The overall proposition offered by the property
That matters because a landlord can look at comparable properties and decide, "I can charge £X because that's what similar properties are advertised for."
But advertised rents don't necessarily tell the whole story.
The more important question might be:
Are tenants actually choosing properties at that price?
The importance of knowing what tenants are rejecting
The new nHabit tool uses data on properties that prospective tenants reject, alongside rental demand information.
That's an interesting development because rejection can tell you something that interest alone doesn't.
If tenants repeatedly reject properties in a particular area or price range, that could provide another indication that something isn't working.
It might be the asking rent.
It might be the condition of the property.
It might be the location.
Or it could be a combination of factors.
For landlords, the lesson isn't that you need access to this particular technology.
It's that decisions are better when they're based on evidence rather than assumptions.
The Renters' Rights Act makes getting the starting rent right particularly important
The first phase of the Renters' Rights Act came into force on 1 May, and the article highlights changes affecting rental pricing.
One of the changes is that landlords and agents cannot accept offers above the advertised rent.
That makes the initial asking price particularly important.
Previously, there could be situations where demand allowed a property to achieve more than its advertised rent.
That isn't an option under the rules described in the article.
So landlords need to think carefully before putting a property on the market.
What is a realistic rent for this property, in this location, in its current condition?
Not:
"What is the highest number I can put on the advert?"
Getting the rent right is only the beginning
There is another point here that shouldn't get lost.
Even if you get the asking rent exactly right, that doesn't automatically make the property a well-managed investment.
You still need to manage everything that happens afterwards.
Tenant communication.
Maintenance.
Documents.
Compliance.
Rent records.
Important dates.
Property information.
And the financial side of running the property.
That's where many landlords find self-management becomes difficult.
Not because any individual task is particularly complicated.
It's the sheer number of things that need keeping track of.
Good information leads to better decisions
The nHabit example is interesting because it demonstrates how technology can turn previously overlooked information into something useful.
For landlords, the same principle applies much more broadly.
You want to know:
What rent am I charging?
When was it last reviewed?
What does this property actually cost me?
When are important compliance dates coming up?
What maintenance has been carried out?
What has been communicated to the tenant?
Can I find the documents I need when I need them?
The more organised that information is, the easier it becomes to make sensible decisions.
And that's increasingly important as being a landlord becomes more demanding.
Technology shouldn't replace landlords. It should help them.
There is a tendency to think of property technology as something designed for large letting agents and property businesses.
But independent landlords can benefit from good technology too.
In fact, they may have even more to gain.
A professional property business has teams, systems and processes.
An independent landlord might have a day job, family commitments and a handful of properties to manage alongside everything else.
That doesn't mean they need to hand the properties over to an agent.
It may simply mean they need better systems behind them.
That's one of the reasons we built 360Rent.
From rental pricing to rental management
Pricing is important.
But it is only one part of the bigger picture.
The real goal should be to have a clear view of your property from the moment you market it through to the day the tenancy ends.
That's why 360Rent brings the key parts of property management together in one place.
Tenancies.
Compliance.
Maintenance.
Documents.
Tenant communication.
Less searching through emails.
Less relying on spreadsheets.
Less trying to remember what needs doing.
And more visibility over what is actually happening with your properties.
The future of self-management is better information
The property industry has always valued information.
Landlords look at rental values, property prices, yields, locations and tenant demand before making investment decisions.
Now technology is giving landlords access to better ways of managing the information they already have.
The lesson from the latest rental pricing technology is simple:
Don't guess when you can know.
Get the rent right.
Understand your market.
Keep your records organised.
Stay on top of your responsibilities.
And build a system that helps you manage your properties rather than letting the admin manage you.
Because being an independent landlord doesn't have to mean doing everything the hard way.
360Rent… less admin, more control.
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