It is imperative you research what the prevailing average rental asking price is, as this is critical in attracting potential tenants. Too low and you could loose thousands of pounds, too high and nobody comes to view.
Contrary to popular belief letting agents do not set property prices. All they do is estimate a reasonable asking price of a property based on their knowledge of the property market. At the end of the day tenants determine the price of a property based on what they are willing to pay.
You can however follow the suggested steps below in assisting you identify the right asking price. Review local property papers; Look in your local Letting Agents window as this will help you to further refine the price of your property.
Review the big property sites. This is the quickest and easiest. Search for similar properties to let in your post code on the big property websites. List them out and subjectively position your property against them. This is your competition and tenants will be comparing your home with these similar properties. If you feel your property is worth more, ensure you can justify why in the description.