After little interest on Sp*reRoom (where I found my last three sets of tenants), I decided to list my 2-bed with OpenRent with a month to go until my current tenants leave.
I’ve been overwhelmed with the interest shown. 60 enquiries in the past few days vs. the 10 or so I had each time in the past.
It’s a nice problem to have, but it makes me think I’ve priced my property too low and the OpenRent calculator agrees, suggesting I could increase the rent by 20% before it reached market rent level.
At the same time, the extra interest could just be down to greater ad exposure and there’s no guarantee viewers will remain interested if the price goes up. Five months without tenants would cancel out any gains to be made by using the new rent.
My questions are,
how realistic (as opposed to optimistic) have you found OpenRent’s calculator to be, and
how do I broach the idea that I’m going to increase the rent above that set in the ad when people have viewed the flat on the basis of the lower rent?
My costs have gone up this year, with the EICR and associated works estimated at over £2700, so I feel ready to increase the rent to cover this in future.
I wouldn’t pay but attention to the calculator. A couple of mine are also estimating about 20% more than I’m getting. There are plenty of comparable properties and none are within 10% of their figure. They also give a range which is so wide it is meaningless.
You can’t really use increased costs as a justification as these would have been known to you at the time of advertising. It’s a sure fire way to get the tenancy off to a bad start and I wouldn’t unless there is genuine evidence you have significantly under priced it.
I just tested the calculator on 3 of mine. It was about right on 2 and over my by about £140 a month on the other.
I think it depends on the location. The one it was over on is an ex housing association house, but it is near some new builds, so I guess it’s looking at the rent that the new builds are commanding and assuming mine is the same because it is nearby.
Best thing to do as a landlord is to keep a search on Rightmove for properties for rent near yours then, when you need to relet, you have a good idea of what you should be asking.
Know your local agents to though - we have one that constantly under prices so it can put signs up like: “Let in 3 day’s” (and I quote - it really did have an apostrophe).
I check on Rightmove rental market in my area
and also compare the properties interior etc
I have noticed that newly painted apartments and if you have looked after property then get the good price and tenants
are willing to pay.
I rented one of my flat in September last year and one of the tenant who viewed my 2 flats and 12 others in the same development and then he took one and he said to me that you look after your flats very well.
I always try to paint my properties at least every 3 years.
Also new sealant in bathroom and kitchen area.
Thank you for your thoughts, Richard. I did have my doubts about the calculator! I’ll see how many people are still interested after this week’s viewings and make a decision then. One alternative might be a six-month introductory offer at the advertised rate, followed by a small increase, all covered in the AST.
That would explain it - mine’s ex-council, although I’m not aware of any new builds nearby that might be pushing up the price. The price seems to be close to the small number of similar sized flats in the same postcode, however.
New sealant makes a real difference doesn’t it! I last painted four years ago when I bought the place. Repainting and indeed a deep clean will depend when people want to move in. I gave my last tenants the choice between my paying for a deep clean at the beginning then their paying for one at the end of the tenancy OR to just a quick hoover, and they went for the latter.
For cleaning there used to be always problem with
tenants at the of the tenancy. So many years ago I decided
to give a flat professionally cleaned and at the end of
tenancy it has to be professionally cleaned and has to be same as before. If it’s not cleaned upto the standards as before then company can send the cleaners again to get it cleaned.
I always do comprehensive inventory check in presence of tenants and also take photographs and if the tenants want to take extra photo they can too.
Then use the date stamp app to stamp all photos and written inventory.
Also make sure to ask tenants to check water running in kitchen and bathroom sinks to prove that there drains are clear.
Again with smoke alarms to ask them to test as they are working and they have checked.
I have have done modifications from years experience dealing with different tenants and still learning as there are still good tenants and a very few bad.