Make Sure the Price is
Right on Your Residential Letting
so many people entering the Buy to let market in the UK,
Ireland, France, Spain and other countries it is very
important get the rental price competitive. This applies
just as much if it is a long-term letting or a self-catering
you have just purchased a residential letting property
and have a mortgage you naturally have to cover the payments,
but regardless of a mortgage to service, if your property
is over priced renters will not pay a higher price. The
only time when this can happen is when there is a small
supply of property and big demand for that that type of
the UK a tenant will still have to pay gas, electricity,
water, Council tax, telephone and insurance on top of
the monthly rent. In other words a rental of £650 per
month means £900 per month of total outgoings. Many Landlords
do not realise this and think that all the renters have
to pay is the rent to them.
landlord who insists that their property is “worth”
£X per monthand in reality they have been advised
by the professional agent it is only worth £-X can
have problems. If it stays on the rental market for a
while at a price that is too high they will never make
up the lost rental (unless there is galloping inflation).
It can of course be a totally different scenario with
a property that is being sold; particularly if property
prices are rising in the area or country.
a self-catering holiday rental you have to offer the property
on what the ”market will pay”. Your property just might
be located in area whereby there are seasonal or (one
time) events when beds are at a premium and to be able
achieve a much higher price. (Wimbledon- England for
the tennis, Monaco for the Formula one Grand Prix, Cannes,
France for the film festival, Cheltenham-England for the
horse racing in March etc.) At other times unless
your property’s price is competitive it will remain empty
more often than full.
you are using an agent, take advice from the agent. They
are normally local to market conditions for long-term
rentals and for holiday rentals a specialist agent will
have studied your area and keep rental values up to date.
If you are using the Internet as a guide spend some time
researching. Use a search engine to find a rental agent
in the area your property is located in or for a self-catering
holiday rental get comparables from a site like jmlvillas.com.
remember with the long term rentals market that although
some people are prepared to make an offer, don’t pitch
the price high so that you think you will get a Tenant
wanting to make an offer. They don’t necessarily do that.
Many people wanting to rent think that prices advertised
are fixed and the owner won’t negotiate or they don’t
even think to go down that route. They will look at the
next available property in “their price bracket”.
This is rather like shopping in the High Street. They
will only pay the price the “goods” are being offered
at in the window.
a holiday rental,it is very rare for a holidaymaker to
make an offer; they just purely search in their price
Suter is a Director of JML Property Services http://www.jmlproperty.co.uk
a UK based company offering Insurance products on line
and a holiday home advertising service http://www.jmlvillas.com
and management training within the uk. He is a very experienced
property consultant with over 30 years work in the Residential
letting business in the UK and served on the National
Council of ARLA. He is a Fellow of the National Association
of Estate Agents (NAEA) and a Member of The association
of Residential Letting Agents (ARLA)
information supplied on this page is by a third party
and jml Property Services do not take any responsibility
to its accuracy ©jmlpropertyservices02/06