This might sound a little controversial but bear with us – it really can work.
As competition within the Nottinghamshire rental sector heats up and with new investors now entering the scene on a daily basis, there has been no better time to consider the optimum price point at which you market your property for a successful let. As letting agents in Nottingham we see it all, from studio flats to six bedroom period properties. No matter what type of property you have, pricing can be the make or break of your lettings business.
Let’s say you have a two bedroom terraced home in a popular residential area. You’ve done the checks on Rightmove and Zoopla and can see that within ¼ mile there are 10 similar properties on the market for £475-£495pcm. As your property is in a good condition, you decide to market it at £495pcm. You find a tenant within 4-6 weeks and congratulate yourself on doing a good job. But have you really maximised the income from your investment?
Interestingly, some of our most successful and profitable landlords let their properties within just two weeks, every time. That is the Tenant has moved in, within two weeks of the property being brought to market. We know, because we help them do it.
Ever considered offering your property for rent ‘below market value?’ You probably think we’re mad to even ask. Imagine putting the same property on the market at £450pcm (around 10% less than the market rate). Because it’s the cheapest, you have floods of enquiries straight away. Not only this, you find yourself in the enviable position of having to select a tenant who can move in quickly as opposed to having to wait for someone to give a month’s notice and possibly have a void period.
Not only could you have an income producing property much sooner, you could also have a more carefully selected tenant who fully understands that they are getting a good deal, pays their rent on time, looks after the property and stays in place for as long as possible. It’s a win / win.
But what if this doesn’t cover your mortgage payment and other monthly outgoings we hear you ask? Well you could consider increasing the monthly rent by up to 7% per year once the tenancy has started. On the basis that it can take over 12 months to recoup the lost funds from just a one month void, this is something worth thinking about very seriously as a means to maximising your income in the long run. Subsidising your mortgage payment by £10 or £20 per month is a much nicer feeling than paying a whole month’s payment for the time the property is unoccupied. Couple this with Council Tax payments now being due on all empty properties (exemptions are a thing of the past) and this method of letting becomes a much more attractive prospect.
Food for thought?
We’re so confident that this model works, we offer to let your property within 2 weeks of marketing or we’ll tenant it for FREE.*
Got a question? Call Slater & Brandley today on 0115 981 9651 to discuss other ways in which we could help maximise your rental profits.
*Terms and condition apply