Rent is only one part of the calculation

The most obvious measure of performance is the monthly rent, but even that requires careful consideration.

Across the portfolio we manage, the average monthly rent reached £1,250 in August 2026. That was 8% higher than the previous year and 54% higher than in August 2016.

Our August averages were:

• Average rent for a one-bedroom property: £929 pcm up 3% from August 2025.
• Average rent for a two-bedroom property: £1,088 pcm up 4% from August 2025.
• Average rent for a three-bedroom property: £1,311 pcm up 3% from August 2025.

Those figures are useful reference points, but they do not automatically tell you what your individual property should achieve. Location, condition, presentation, energy efficiency, parking, outside space and proximity to local amenities can all affect the result. Two apparently similar properties in the same town can perform very differently.

That is why a professional rental assessment should not be based on what a neighbour achieved last year or the highest asking rent currently shown online. It should use current evidence from comparable properties and an honest assessment of what tenants are prepared to pay now.

The highest rent does not always produce the best return

A commercially minded landlord understands that headline rent and genuine return are different things.

In August , every property we advertised generated an average of 11 enquiries. A property placed on the market at £50 above its realistic rental value may appear to offer an additional £600 a year but if it remains empty for an extra two or three weeks, that entire increase can disappear before the tenancy has even started.

Price too low and you may lose income every month. Price too high and you risk a longer void, repeated reductions and a listing that begins to look stale.

The best result is not necessarily the biggest advertised number. It is the strongest sustainable rent achieved within a sensible timescale, with a well-qualified tenant who is likely to remain. Our average tenancy now lasts around 48 months. A good tenant paying the right rent and looking after the property can be considerably more valuable than repeatedly chasing the very top of the market.

What is the property really costing you?

Rent is turnover, not profit. To understand whether an investment is performing properly, a landlord should also consider:

• Mortgage and finance costs
• Insurance
• Repairs and routine maintenance
• Safety and compliance work
• Management costs
• Empty periods
• Refurbishment between tenancies
• Longer-term improvements
• Taxation

Some costs cannot be avoided, but others can be planned and managed more effectively. A small maintenance issue dealt with early may prevent a much larger repair. A planned refurbishment can reduce repeated callouts, improve energy efficiency and make a property more attractive to good tenants.

Sometimes an improvement costing a few thousand pounds can support a higher rent and protect the property’s future appeal. On another property, the same work may make little commercial difference.
The answer should come from evidence not guesswork.

Is compliance protecting or weakening your investment?

Compliance is sometimes treated as an administrative burden sitting separately from investment performance. In reality, the two are closely connected. A property with missing certificates, incomplete records, unresolved hazards or incorrectly served documents carries a financial risk. That risk may include penalties, compensation, Rent Repayment Orders, difficulty recovering possession and potentially expensive remedial work.

Since the Renters’ Rights Act came into force, we found that 78% of the new properties brought to us for management were not fully compliant when they arrived. Most of those landlords were not deliberately ignoring their responsibilities, they believed everything was in order.

A commercially run property business should not depend on assumptions. It needs reliable records, clear repair histories, documented communication and evidence that responsibilities have been met.
Good compliance does more than avoid a fine. It protects the income, flexibility and underlying value of the investment.

Could a modest improvement change the result?

Performance is not always improved by increasing the rent, sometimes presentation is the real issue. Better flooring, refreshed decoration, improved lighting or a more practical kitchen can alter the type and number of enquiries received.

In other cases, the property may already be presented correctly but aimed at the wrong section of the market. The photographs, description, timing or rental figure may need to change. This is where local knowledge becomes especially valuable.

We do not simply look at national averages – we examine what is happening across Cambridge, St Ives, Huntingdon, Ely and the surrounding villages: which homes are attracting attention, which are taking longer to let and what tenants are prioritising.

Because we specialise in residential lettings rather than routinely selling property, our advice is focused on how a home will perform as a rental investment.

Does the property still suit your long-term plan?

A successful investment should be reviewed against the reason it was purchased.

Are you seeking monthly income, long-term capital growth or a combination of the two? Are you planning to retain one property, build a portfolio or eventually pass assets to the next generation? A property that performed well ten years ago may not be the best fit today. Equally, a property that appears disappointing may need a rent review, refurbishment or different management approach not an immediate sale. Regular performance reviews allow landlords to make calm, informed decisions rather than reacting when a tenant leaves, a large repair arrives or the market changes.

Request a rental performance review

At Maxine Lester Lettings and Property Management, we have specialised in residential lettings since 2005.

Our approach is Expert, Honourable and Personal. We use current local evidence, experience from the properties we manage and a clear understanding of today’s legislation to help landlords make better-informed decisions. A rental performance review can consider your current rent, likely demand, property presentation, potential improvements, compliance position and the costs that may be affecting your return.

It is not simply about asking, “Can the rent go up?”

The more valuable question is:

Is this property delivering everything it reasonably could and what should you do next?

If you own a rental property in Cambridgeshire and would like a clearer picture of how it is performing, contact the Maxine Lester team to request your rental performance review.