Landlord’s Question:
“Hi Andy,
I have been following the Warrington property blog for some time now and really enjoyed reading the ‘Ask Andy’ section last month. I have a rental property in Warrington – a 3 bedroom semi on Smith Drive. I have no problem letting it. It’s usually snapped up within a week of advertising.
The current rent I get for it is £625pcm. The property will be empty in 2 months and I wanted to ask you how much rent can I actually get for my Warrington property?
Am I under or over charging?
Thanks,
Neil”
Andy’s Answer:
Hi Neil, I’m glad you enjoyed the ‘Ask Andy’ section last month and thank you for following the Warrington Property Blog. Now, you raise an interesting question. Without actually coming out to see the property I will have to work with averages. The average rental price for a 3 bedroom semi on Smith Drive is £750pcm.
As you can see, you are currently under charging and this will explain why your property isn’t on the market long when you list it as to let! However, I do get asked this question at least one or twice a year, so I think it would be fair to explain my thoughts behind an appraisal and how I arrive at the figure in the first place.
Getting the Most from your Property
When you are renting out property, you want to be able to maximise your profits, whilst also being fair with prospective tenants. If you charge rents which are too high, you are likely to put people off, which can make it difficult to get your property let.
These are some basic points landlords should consider when trying to find the right rental price to charge tenants.
Location VS Competition VS Demand
The location of the property is one of the main considerations when it comes to pricing up your rental property. If the property is in Stockton Heath, Appleton, Grappenhall, etc then the numbers will naturally differ as these are the most desirable areas in Warrington.
I was conducting a best price guide for one of our Warrington landlords in the Great Sankey area recently and within a 1/4 mile radius of their postcode, there were over 9 similar properties available to rent! Two of the properties are still being marketed since first being listed in October 2016!
Unfortunately, the demand for properties in this location did not outweigh supply… quite the opposite. So in these situations, I would recommend marketing the property just under market value to give you a competitive edge. Yes, you can hold out for that extra £25 a month but – here’s the kicker – holding out for £25 more on the rent could lose you £725 per month! How many £25s go into £725?
For out-of-town properties, you may have less competition. However, if you over-price, you will still struggle to let it out. The key is to find a balance between what is currently available against what has been let in the last 6 months (and take into consideration what your appetite is to get a quick let and reduce any void periods.)
Know your Target Audience
You should also think about the type of tenants you are looking for in your property. Are you happy for students to let your property or would you prefer working professionals?
We recently took on a 7 bedroom HMO in a student area, but the landlord didn’t want students. Needless to say the property remained on the market for a while as, due to its location, the demand for professional tenants was low and the property just wasn’t filling until the landlord agreed to open up the net and allow students… the property was quickly fully let thereafter.
Size of Property
The size of the property is another consideration and also any additional extras, such as a garden/driveway/en-suite/additional WC/garage. Again, looking at properties of a similar size will help give you a better idea of the best rates to charge.
Amenities / Transport Links
You should also consider the local amenities. If you are situated near shops, surgeries and town centre you can definitely charge more for rent. The opposite is also true…some people like to be away from the ‘hustle and bustle’ of people and cars and therefore, the outer semi-rural areas would be more appealing to them. Proximity to train stations and bus routes play a vital role in pricing up your property. In Warrington we are fortunate to have the added bonus of being in the middle of the motorway network.
Furnished / Unfurnished
Furnished properties are generally more expensive than unfurnished, although not in all cases. You may want to think about furnishing the property (although the cost of maintaining the furnishings may be prohibitive and in the end counter-productive against your net annual yields).
So Neil, these are the things I take into consideration when doing an appraisal. Although I cannot give you an honest figure, I can tell you that your current rent is much lower than the average. Providing your property is in a good condition, I see no problem as to why you cannot advertise your rental property once it’s empty for £700+ per calendar month.
If you are looking for an agent with experience that can help you price your property and find the best tenants for it, then contact us to find out how we can get the best out of your investment property.
Email me on andy@hamletwarrington.co.uk or give me a call on 01925 235 338. Pop in for a chat – we are based on 6 Bankside, Crosfield St, WA1 1UP. There is plenty of free parking and the kettle is always on.
-Andy
Don't forget to visit the links below to view back dated deals and Warrington Property News.
Blog, http://warringtonpropertyblog.co.uk/
Facebook, https://www.facebook.com/hamlethomeswarrington
Twitter, https://twitter.com/HHWarrington
Website, http://www.hamlethomeswarrington.co.uk
“Hi Andy,
I have been following the Warrington property blog for some time now and really enjoyed reading the ‘Ask Andy’ section last month. I have a rental property in Warrington – a 3 bedroom semi on Smith Drive. I have no problem letting it. It’s usually snapped up within a week of advertising.
The current rent I get for it is £625pcm. The property will be empty in 2 months and I wanted to ask you how much rent can I actually get for my Warrington property?
Am I under or over charging?
Thanks,
Neil”
Andy’s Answer:
Hi Neil, I’m glad you enjoyed the ‘Ask Andy’ section last month and thank you for following the Warrington Property Blog. Now, you raise an interesting question. Without actually coming out to see the property I will have to work with averages. The average rental price for a 3 bedroom semi on Smith Drive is £750pcm.
As you can see, you are currently under charging and this will explain why your property isn’t on the market long when you list it as to let! However, I do get asked this question at least one or twice a year, so I think it would be fair to explain my thoughts behind an appraisal and how I arrive at the figure in the first place.
Getting the Most from your Property
When you are renting out property, you want to be able to maximise your profits, whilst also being fair with prospective tenants. If you charge rents which are too high, you are likely to put people off, which can make it difficult to get your property let.
These are some basic points landlords should consider when trying to find the right rental price to charge tenants.
Location VS Competition VS Demand
The location of the property is one of the main considerations when it comes to pricing up your rental property. If the property is in Stockton Heath, Appleton, Grappenhall, etc then the numbers will naturally differ as these are the most desirable areas in Warrington.
I was conducting a best price guide for one of our Warrington landlords in the Great Sankey area recently and within a 1/4 mile radius of their postcode, there were over 9 similar properties available to rent! Two of the properties are still being marketed since first being listed in October 2016!
Unfortunately, the demand for properties in this location did not outweigh supply… quite the opposite. So in these situations, I would recommend marketing the property just under market value to give you a competitive edge. Yes, you can hold out for that extra £25 a month but – here’s the kicker – holding out for £25 more on the rent could lose you £725 per month! How many £25s go into £725?
For out-of-town properties, you may have less competition. However, if you over-price, you will still struggle to let it out. The key is to find a balance between what is currently available against what has been let in the last 6 months (and take into consideration what your appetite is to get a quick let and reduce any void periods.)
Know your Target Audience
You should also think about the type of tenants you are looking for in your property. Are you happy for students to let your property or would you prefer working professionals?
We recently took on a 7 bedroom HMO in a student area, but the landlord didn’t want students. Needless to say the property remained on the market for a while as, due to its location, the demand for professional tenants was low and the property just wasn’t filling until the landlord agreed to open up the net and allow students… the property was quickly fully let thereafter.
Size of Property
The size of the property is another consideration and also any additional extras, such as a garden/driveway/en-suite/additional WC/garage. Again, looking at properties of a similar size will help give you a better idea of the best rates to charge.
Amenities / Transport Links
You should also consider the local amenities. If you are situated near shops, surgeries and town centre you can definitely charge more for rent. The opposite is also true…some people like to be away from the ‘hustle and bustle’ of people and cars and therefore, the outer semi-rural areas would be more appealing to them. Proximity to train stations and bus routes play a vital role in pricing up your property. In Warrington we are fortunate to have the added bonus of being in the middle of the motorway network.
Furnished / Unfurnished
Furnished properties are generally more expensive than unfurnished, although not in all cases. You may want to think about furnishing the property (although the cost of maintaining the furnishings may be prohibitive and in the end counter-productive against your net annual yields).
So Neil, these are the things I take into consideration when doing an appraisal. Although I cannot give you an honest figure, I can tell you that your current rent is much lower than the average. Providing your property is in a good condition, I see no problem as to why you cannot advertise your rental property once it’s empty for £700+ per calendar month.
If you are looking for an agent with experience that can help you price your property and find the best tenants for it, then contact us to find out how we can get the best out of your investment property.
Email me on andy@hamletwarrington.co.uk or give me a call on 01925 235 338. Pop in for a chat – we are based on 6 Bankside, Crosfield St, WA1 1UP. There is plenty of free parking and the kettle is always on.
-Andy
Don't forget to visit the links below to view back dated deals and Warrington Property News.
Blog, http://warringtonpropertyblog.co.uk/
Facebook, https://www.facebook.com/hamlethomeswarrington
Twitter, https://twitter.com/HHWarrington
Website, http://www.hamlethomeswarrington.co.uk
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