I used to use letting agents to manage my family’s buy to let properties (i have only 4 under my control), but have started moving them to OpenRent slowly.
My question is how do you attempt to calculate the “current market rental value” for a property? So far I’ve attempted to analyze the listings within Rightmove, Zoopla etc for similar properties in the same area but they do not tell you what the final rent was agreed at and therefore i find these out of date. I also am obviously unaware of what the landlord/letting agents strategies are. Do they for example advertise the rent at a much higher value to chance it, but with the intention of agreeing upon a lower rate? Is there another trick i’m missing?
The rental value of a property is not an exact science it is an educated guess. For me when doing research on RM I look at the date it was listed and the date it is shown as “Let Agreed.” In the current LL market a property in a large town will have an agreed tenancy within a week. On that basis I assume it would normally be let for the advertised rent. The LL will usually have several prospective tenants willing to pay the advertised price so no need to negotiate.
pretend to be a tenant, go and see some other properties near you that are up for rent and negotiate with landlord, then drop out before getting to contract
yes, ha ha I think it is quite normal to gather information like this. In my working life I often send employees to job interviews with competitors to gather competitor intelligence, too. And also make sure to interview competitor employees for jobs and get them to spill the beans on salaries, etc. Industrial espionage.
I would set my rent nearer the top end of the market value (only if your property is in good condition), and hope to find good tenants. If there’s no/little interest, then you know you are too high. If you are lucky, then you get yourself a good deal. I never have a rent below advertisement.