Expert tells landlords knowing 'rental market value is crucial'

Landlords need to know the rental market value of a property, an industry body has said.

The Residential Association of Landlords (RLA) has warned buy-to-let investors that they should consider the type of tenants the property is likely to attract.

Alan Ward, a director of the RLA, said that it is also important to compare properties in the same area to get a better idea of value.

He explained: "Rental market value is crucial. Local rents vary so check in the press, on websites and with letting agents. It will also vary by the type of tenants – a student house will get more than a family."

Mr Ward said that landlords also need to take into account that they will only get ten months rent from students "unless they pay a holding tax for the following year".

The average rent in the UK stood at £588 in August 2008, up from £577 in July, according to Rentright's Residential Rental Price Index.

Property Investment News posted on 03/09/2008 15:38:24