Set the rent too high and the property sits empty; set it too low and you lose money every month for as long as the tenant stays, because increases are now limited to once a year and can be challenged at a tribunal. Getting the starting rent right matters more than ever. This guide shows how to find the market rent from real evidence, adjust for your property, and stay within the Renters’ Rights Act rules on advertising and increases.
Key takeaways
- Base the rent on what similar nearby properties have actually let for, not on asking prices.
- Adjust for size, condition, parking, outside space, furnishing and EPC rating.
- Advertise a fixed rent. Since May 2026 you cannot accept offers above the advertised figure.
- After that, rent can only rise once a year with a Section 13 notice, and old rent review clauses no longer work.
- Check the rent still gives you an acceptable yield after costs.
Step 1: Gather comparable evidence
Find five to ten properties that match yours as closely as possible: same type, same number of bedrooms, within about half a mile, let within the last few months.
- Rightmove and Zoopla: filter to include “let agreed” properties, which show what actually let rather than what is still on the market.
- Local letting agents: ask two or three for a rental valuation. They are usually free, and agents see real applicant demand.
- Official data: the ONS publishes average private rents by local authority each month. It is useful for trends, though too broad for pricing one property. See our report on the latest ONS private rent figures.
Keep a note of your comparables. The same evidence will support your next rent increase if the tenant challenges it.
Step 2: Adjust for your property
No two properties are identical. Work out where yours sits against each comparable.
| Usually worth more | Usually worth less |
|---|---|
| Parking, especially in cities | No outside space |
| Garden or balcony | Dated kitchen or bathroom |
| Recently refurbished | Poor EPC rating and high bills |
| Close to stations and good schools | Busy main road or above a shop |
| Extra bathroom or en-suite | Awkward layout or small bedrooms |
| Furnished, in student or professional markets | No washing machine or poor storage |
Step 3: Check the numbers work for you
The market sets the rent, but you need to know whether it covers your costs. Work out the gross yield (annual rent divided by the property value) and, more importantly, your net cash flow after mortgage, insurance, maintenance, letting fees, voids and tax. Our free ROI calculator handles the basics, and the Does It Stack? calculator runs a full deal appraisal including the 2027 tax changes.
Step 4: Check affordability for tenants
Most referencing companies look for an annual household income of around 30 times the monthly rent. At £1,200 a month, that is about £36,000 a year. If the local market cannot support that income, a slightly lower rent can mean better applicants and fewer arrears.
Step 5: Advertise within the new rules
Since 1 May 2026, under the Renters’ Rights Act:
- adverts must state a fixed asking rent;
- you cannot invite, encourage or accept offers above that figure (rental bidding);
- you cannot ask for more than one month’s rent in advance;
- you cannot refuse applicants just because they receive benefits or have children.
So the advertised rent is your rent. If demand is high, you cannot let applicants bid it up; if it is low, reduce the advertised figure rather than negotiating case by case.
Reviewing the rent during a tenancy
Rent review clauses, including fixed or index-linked increases written into tenancy agreements, no longer have effect. The only ways to increase the rent are:
- a Section 13 notice, once a year, with two months’ notice, and not in the first 12 months of the tenancy; or
- a new rent the tenant freely agrees to.
The tenant can ask the First-tier Tribunal to decide the market rent, and it cannot set a higher rent than you proposed. Your comparable evidence from Step 1 is what wins that case. For a tenant you want to keep, staying slightly below market often pays; see why tenants leave and how to keep them.
Common mistakes
- Pricing from asking rents rather than let-agreed rents.
- Setting the rent from what you need to cover the mortgage instead of from the market.
- Starting high “to leave room to negotiate”, which the bidding ban makes pointless.
- Leaving the rent unchanged for years, then proposing a large jump that a tribunal may cut.
Written by The Landlords Portal Team and updated in November 2026. Applies to private tenancies in England. This is general information, not legal or financial advice.
Frequently asked questions
How do I work out the market rent for my property?
Compare five to ten similar properties nearby that have let recently, using let-agreed listings and agent valuations, then adjust for differences in size, condition and features.
Can tenants offer more than the advertised rent?
Not since 1 May 2026. Landlords and agents in England must advertise a fixed rent and cannot invite or accept offers above it.
How often can I increase the rent?
Once a year, using a Section 13 notice with two months’ notice. Rent review clauses in tenancy agreements no longer apply.
Template pack from Landlords Portal
Run every inspection properly: the Property Inspection Kit
Dated evidence of the property's condition protects you in repair, damp and deposit disputes. This kit gives you every document for an inspection, written for landlords in England.
- 24-hour notice letter and tenant repair report form
- Room-by-room checklist, inspection report and photo log
- Follow-up letters, plus an Excel tracker for gas safety, EICR and EPC dates
