How to calculate your rental property’s value – A guide to boosting rental income
TheHub@Druce- •
- 15 May 2025
How to calculate your rental property’s value – A guide to boosting rental income
This guide walks you through clear steps to estimate rental value, calculate rental yield, and increase rental income through high-return investments in simple steps
Step-by-Step: Estimating your rental value
Step 1: Find comparable rentals
Look for 3–5 similar properties recently let in your postcode:
- Same number of bedrooms & bathrooms
- Similar interior condition & amenities
- Same type (flat, house, new-build, etc.)
How: Rightmove, Zoopla, OnTheMarket, or contact @Druce
Step 2: Standardise monthly rent
Convert weekly listings to monthly (PCM):
Formula:
Weekly Rent × 52 ÷ 12 = Monthly Rent
Example: £700/week × 52 ÷ 12 = £3,033/month
Step 3: Calculate gross rental yield
Use this to understand your property's return vs market value.
Formula:
Gross Yield (%) = (Annual Rent ÷ Property Value) × 100
Example:
- Rent: £3,200/month → £38,400/year
- Property Value: £925,000
- Yield: (38,400 ÷ 925,000) × 100 = 4.15%
Step 4: Adjust for features
Refine value based on property condition:
| Feature | Rental Impact |
|---|---|
| Renovated interior | +10–15% |
| Outdoor space or balcony | +5–10% |
| Lift in building (if >2F) | +5 |
| EPC A–C | +3–5% |
| Dated décor / EPC D or lower | –5–10% |
Sample yield table – Notting Hill 2-bed flat
| Item | Value |
|---|---|
| Area | Notting Hill W11 |
| Property Type | 2-Bed Flat, 900 sq ft |
| Condition | Recently Renovated |
| Rent Achieved (Mar 2025) | £3,200/month |
| Estimated Annual Rent | £38,400/year |
| Market Property Value | £925,000 |
| Gross Rental Yield | 4.15% |
Boost rental income with High-return investment upgrades
In high-demand areas like Prime Central London, staging or furnishing can increase rent by 15–20%, especially for empty or poorly presented flats.
Furniture & Staging ROI Calculator
| Item | Amount |
|---|---|
| Furniture Package | £6,000 (one-time) |
| Rent Before | £3,000/month |
| Rent After | £3,600/month |
| Annual Rent Uplift | £7,200/year |
| ROI | (£7,200 ÷ £6,000) × 100 = 120% |
You recover your cost in under 12 months.
- Reassess rental value annually or before relisting.
- Use property management services to retain quality tenants and reduce void periods.
- Want to optimise returns? Let @Druce help you stage, price, and rent smarter.
The #1 tip for a quick sale
London’s property market offers international buyers a wide range of opportunities, whether you're seeking a long-term investment, a high rental yield, a family home, or a second residence. With its stable market, high rental demand, world-class education system, business opportunities, and unmatched lifestyle.
