Why Setting the Right Asking Rent Matters More Than Ever
Setting the right asking rent has always been an important part of letting a property, but the decision carries even more weight under the rules introduced on 1 May 2026.
Landlords and letting agents must now include a specific rent in written advertising. They cannot encourage rental bidding or accept an offer above the advertised amount.
That means the asking rent should not be treated as a starting point for negotiation between competing applicants. It needs to be a considered figure that reflects the property and the local market before the advert is published.
The Asking Rent Is More Than a Number on an Advert
It can be tempting to choose a rent by looking at a few similar properties online and selecting the highest figure.
However, an advertised rent does not necessarily show what a tenant eventually agreed to pay. A property may have been reduced, remained vacant for weeks or been marketed at an unrealistic figure.
Condition, layout, parking, outside space, energy efficiency, proximity to transport and the standard of the kitchen and bathroom can all affect demand. Even within the same town, the achievable rent may change from one road or neighbourhood to another.
A reliable rental valuation therefore needs local knowledge as well as online comparisons.
Why Overpricing a Rental Property Can Be Expensive
A high asking rent may appear to protect a landlord’s return, but overpricing can produce the opposite result.
The strongest applicants often understand the local market. If a property appears poor value, they may not arrange a viewing at all.
This can leave the landlord with fewer suitable enquiries, a longer marketing period and pressure to reduce the rent later.
The cost of a void period can quickly outweigh a modest difference in monthly rent.
The best asking rent is not necessarily the highest imaginable figure. It is the figure most likely to attract suitable applicants and support a stable tenancy within a sensible timeframe.
Underpricing Also Creates Long-Term Problems
Pricing too low is not the answer either.
Since 1 May 2026, rent for a new assured periodic tenancy cannot normally be increased during its first year. After that, increases are generally limited to once a year and must follow the statutory Section 13 process using Form 4A with at least two months’ notice.
This makes it important to establish a fair and supportable rent at the start.
A landlord who significantly underprices a property may find the income does not adequately cover increasing management, maintenance, insurance or finance costs. Correcting a large gap later can also be difficult for the tenant and may be open to challenge if it exceeds the open market rent.
The aim should be a balanced figure: commercially sensible for the landlord, realistic for the property and affordable for the type of tenant the home is likely to attract.
Local Knowledge Matters in Torbay, Teignbridge and the South Hams
The South Devon rental market cannot be understood through one average figure.
Demand in central Torquay can differ from demand in Brixham, Paignton, Newton Abbot or a rural South Hams village. A tenant relying on public transport may prioritise a different location from a household seeking parking, a garden or access to a particular school.
A local valuation should consider:
- The immediate road and neighbourhood
- Property type, size and layout
- Parking and outside space
- Decorative condition and quality of fittings
- Energy efficiency and likely running costs
- Current competing properties
- The likely tenant audience
- Recent local enquiry levels
- Any restrictions affecting how the property can be used
This is why two superficially similar homes can require different pricing strategies.
Presentation and Readiness Affect the Achievable Rent
The condition in which a property reaches the market matters.
Clear photographs, an accurate floor plan and a well-written advert help prospective tenants understand what is being offered. Cleanliness, working fixtures, completed repairs and neutral presentation can also improve the quality of enquiries.
Not every improvement will increase the rent. However, addressing visible damage, refreshing tired decoration or completing overdue maintenance can make the property easier to let and reduce questions during viewings.
An experienced local agent can help distinguish between work that is essential, work that may support the rent and work that is unlikely to repay its cost.
The Right Asking Rent Supports Better Tenant Selection
When a property is realistically priced and clearly presented, the landlord is more likely to receive a healthy range of suitable enquiries.
This creates room for careful tenant selection. The decision should not be based only on who responds first.
Affordability, income evidence, credit history, previous landlord references and the applicant’s circumstances all need to be considered through a lawful and consistent referencing process.
The new rules also prohibit discrimination against applicants because they receive benefits or have children. Every application should be considered fairly and on its individual evidence.
A sensible asking rent helps suitable applicants assess whether the property is affordable before they apply. That can reduce failed referencing, withdrawn applications and wasted time.
Review Rent Consistently, Not Reactively
Setting the correct rent at the beginning does not mean ignoring it indefinitely.
Landlords should review the market regularly, even where they decide not to increase the rent. A consistent annual review is usually more manageable than allowing a substantial gap to build over several years.
Any increase must be supported by the open market rent and follow the correct process. It is often helpful to discuss the position with the tenant before serving formal notice, particularly where they have looked after the property and paid reliably.
A rent review should consider both the market and the value of a stable tenancy. Replacing a good tenant involves marketing, administration and the risk of a void period, so the strongest commercial decision is not always the largest immediate increase.
Get an Experienced Rental Valuation
An accurate rental valuation combines evidence, local knowledge and an honest assessment of the property.
At Bright Star Lettings, we work with landlords across Torbay, Teignbridge and the South Hams. We can advise on the likely asking rent, how to prepare the property for marketing and the level of support that best suits the landlord.
That may be a fully managed service, tenant find support or selected individual services through our flexible Pick and Mix approach.
To arrange a rental valuation or discuss your property, call Bright Star Lettings on 01803 226400 or email info@brightstarlettings.co.uk.