The amount of money to charge per room is a very important factor when letting your rooms out. You want to make sure that the price isn't too low that your missing out on potential profit and not too high that it doesn't fit people's budgets. 
Something that goes hand in hand with the amount to charge per room is the demand for rooms in the area that you are focusing on. Here's a link to our previous blog that goes over that if you haven't read it already. 
Here are three steps you can take to come to a figure: 

1. Check average rates on Spare Room 

This is something that can be done anytime anywhere, as long as you've got an internet connection and a technical device (mobile, tablet, laptop). In this example right here I'll do the centre of Bristol.  
Go onto the Spare Room website - 
Type in the postcode for your property (In this case we'll be using BS1) > select flatmates & click on search 
Click on "Check average rents in the area"  
Look for the type of room that suits what you've got available. (Bills included/excluded, single/double room) 
Now you've got the average ball park figure of what an average room can go for in the area, after doing this it's good to then look at the rooms available to see the type of quality that's on the market as this will also govern the price per room. You may find that prices can fluctuate up to £200, but when doing your calculations it's important to still work with the average prices to mitigate risks.  

2. Call HMO letting agents and ask them 

This is something that can also be done anywhere, however you need to ensure that the agents are open for business. In this instance you can call up as a tenant and get an understanding for how much the rent is in the area you're focusing on. You want to make sure that you get the details of the variables you're working with such as: single or double room, furnished or unfurnished, quality of the room, bills included or excluded. A good HMO letting agent will be very helpful when providing information, this is how you can also find out if they'll be a good agent for you if you're looking to hand over your property to a HMO management company. 

3. Join local property networking groups and ask them 

This is another point that can be done anytime anywhere. The most popular platform for these types of groups is Facebook. 
Search on facebook "property networking group Bristol (your area)" and a list of property related groups will come up. Then you can join these groups and post the question: "How much should I charge per room for my HMO?". This way you can get experienced landlords and agents helping you out for free giving you useful advice. These are 3 main ways to find out how much you should charge per room in your HMO, if you've got a HMO property that you'd like us to manage then fill in the contact form and we'll do our best to accommodate your needs. If you'd like any other information then contact us. 
If you've got a HMO and are looking for guaranteed rent or even have any questions related to HMOs, feel free to go to the Landlord Management Services page on our website (click HERE), or contact us on email. 
Share this post:

Leave a comment: 

Our site uses cookies. For more information, see our cookie policy. Accept cookies and close
Reject cookies Manage settings