Tenants, rent prices and letting property
06th August 2012
Setting appropriate rent prices for your property is one of the most essential aspects of the lettings game, as the rates that you charge have a direct influence on the profits that your portfolio will yield.
And even though the temptation may be to try to set the highest possible prices in an effort to enjoy particularly impressive returns, the risk involved with such an approach is that you end up putting tenants off of your properties due to the availability of cheaper options elsewhere.
So if you have been struggling to attract people to your assets despite the fact they are well maintained and perfectly located in terms of nearby transport links, Daniel Burgess, managing director of the Discount Letting Service, advises doing some research on rent prices in the local area.
"A first point of call if a property is not attracting tenants is to check the rental price the property is being offered at," he said.
"Do some research and check the property isn't overpriced. If the property is overpriced then dropping the rent accordingly will make a big difference."
Indeed, rather than looking at aspects such as extra furnishings and bonuses like wireless internet, it could be that it's the rent prices that are proving the stumbling block for any aspiring tenants, so this could be the area that needs to be addressed in order to restrict any costly void periods.
By looking at the rates landlords with similar properties are charging in the local area, investors can make a more informed decision and set their own prices accordingly as they bid to secure a quick tenancy agreement.
But whether it's the cost of the rent or the style of the property, landlords with traditionally more profitable houses in multiple occupation need to be sure they protect their assets with freehold insurance policies.
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