How Do We Calculate Rent?

Rent can be based on a number of factors including the location of the property, the prevailing rent charges, the amount of demand for rental properties, the state of the economy etc. In the United Kingdom the ARLA or the Association of Residential Letting Agents stipulates that a landlord should be allowed or be able to claim around a hundred and thirty to a hundred and fifty percent of the properties mortgage interest repayments. If the interest being repaid on a property is a £1000 per month than the landlord should be able to charge around £1300-1500. The amount of excess interest earned on the property can be reinvested into repairing and upgrading the property itself and there by save on tax.

The property market in the United Kingdom is growing very fast and keeping properties beyond two to four years is at times considered impractical.