No agency costs. Deciding rent figure

Landlord Discussion
1

I am self managing, therefore I have no agent fees.

I have no mortgage on the one-bedroomed house I let out and the maintenance/repair/upkeep costs are minimal.

If you have no agent fees or mortgage to factor in, how much below the advertised rent, for similar properties in your area, done through an agent, are you prepared to go?

I was recently getting £625 a month for the property, whereas similar properties in town, through an agent are advertised at around £750 to £790 per month. Bearing in mind the landlords get charged a substantial fee/percentage.

This also made me wonder. Do properties sometimes get let out for a lower rent than the agents advertise?

I appreciate your input.

Thank you.

In other

2

Only you can really answer. LL who self manage and no mortgage often let out for a lot less than comparable through agents.

Lower rents can help to keep tenants.

I must admin I’m not the best at increasing rents unless I have to iE mortgage rate change.

3

I am as above and have had the same tenants for many many years

4

Your costs are largely irrelevant to the rental price. This should always be based on the average market rent for the area. Traditionally rent was measured as a percentage of the value of the property, so you don’t need to discount it at all.

6

Properties will sometimes be let for less than advertised. Prospective tenants will sometimes make a slightly lower offer (especially in a slow rental market) and it will be for the LL to accept or reject.

Another consideration might be if the prospective tenant doesn’t quite meet the affordability threshold but meet all other checks. Again the LL decides whether they are prepared to reduce the rent accordingly.

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