How Much Rent Should I Charge Tenants?

Posted on October 7, 2019October 14, 2019 by colin_williams

While being a landlord can be lucrative, it isn’t an easy role. You have a lot of big decisions to make, and it is understandable many landlords need assistance. We aim to help you make an informed decision or decisions on matters such as rent, no matter your situation.

We know setting a rental fee is hugely important for landlords, and if you need guidance in this area, you are not alone. The question of how much rent should I charge is a familiar one for landlords, and it is one our clients ask us. We know it would be great to receive a high rental fee, but in today’s competitive market, this isn’t always possible.

Tenants are savvy regarding rent options these days

Tenants are savvy, and they research their options. If you overprice your rental property in comparison with other homes in the local area, it is likely you won’t generate much interest in your rental property.

You may think a small rental fee increase doesn’t matter much, but to tenants, it can be a lot of money. When your finances are pushed to the limits, an extra £10 or £15 a month adds up. Don’t forget that an additional £10 a month is equal to an extra £120 a year, and for many people right now, this is a lot of money.

How does your rental property compare to local options?

It is helpful to consider the local market, and what rental fees are in place right now. You should look at the average rental fee for your type of home in your area, but this doesn’t mean you should charge this fee. You should know how your property compares with the average rental properties in the area.

If your rental accommodation is better than the average rental home, you can justify charging a more significant rental fee. If your rental accommodation isn’t up to the standard of the average rental fee, you should look to charge a lower rental fee for your accommodation.

The condition of your home, the size of your home and the number of bedrooms on offer are important factors to consider when setting a rental fee. However, there are also factors outside of your control when it comes to the rental fee tenants are happy to pay.

You need to consider the following aspects when setting a rental fee:
Your location, and the availability of facilities and amenities nearby
Your location, and the demand for rental property in this area
Your location, and the supply of rental homes in your area
Whether the property is furnished or not

All these factors influence the right price for your rental fee, and if you need help in determining the best rental price for your needs, you are not alone.

At Williams of Petersfield, we are pleased to say we know the local rental market. Our knowledge and guidance provide you with insight, which helps you make an informed decision regarding your rental fee. If you are a landlord looking for help to serve your tenants, contact us today, and we’ll be happy to help.

Are Landlords Selling Up? How Will This Impact On Property Market?

Posted on June 19, 2018June 22, 2018 by colin_williams

Even though there are many factors shaping the behaviour of the property market in England, there is consensus that a lack of affordable homes is a key factor. Brexit may be the issue that receives most media coverage but if there were more homes on the market, there would likely be more affordable homes and the level of pressure that buyers feel in the market would be lower.

At Williams of Petersfield, we know that many people have concerns about the property market, and they are keen to stay in touch with the latest news. You will also find that people are keen to hear predictions for the property market and information provided by the National Landlords Association is of interest to prospective buyers, property owners and even tenants.

The NLA suggests landlords selling up is likely

The NLA conducted a poll of its members and they found that in the next 12 months, around 20% of landlords are looking to sell property. Of this group looking to sell their property, which equates to around 380,000 landlords, 45% of landlords are looking to sell flats or apartments.

This news is likely to be welcomed by first-time buyers. Flats and apartments are the properties most commonly bought by people stepping on to the property ladder for the first time, so if the market is flooded with these properties, first-time buyers should have a greater chance of buying.

Given that a crucial component of property prices being high is the fact that demand is greater than supply, a significant increase in the supply of properties could lead to prices falling. That is the hope of many people, but of course, when it comes to property prices, the market doesn’t always behave in the manner that you expect it too.

Tenants wouldn’t view this news as positive

While this report will be viewed as positive news by people looking to buy property, it will be concerning news for tenants and people priced out of the property market. Many people find the rental market challenging as it is but if the supply of flats and apartments to the market dropped significantly, there could be ramifications for the market.

It would be reasonable enough to assume that rental fees would rise, and many people would find themselves priced out of the rental market, never mind the property market. Also, with flats and apartments being popular in the rental market, there could be a significant fall in the supply of suitable homes.

There is no guarantee that these predictions will come true. It may be that landlords find it easier to say they intend to sell property in a survey than it is to sell in real life, but there is no denying that the property and rental market will be significantly impacted on if these changes come to pass.

No matter what your aims or ambitions are in the Petersfield property market, it makes sense to be fully informed. At Williams of Petersfield, we look forward to assisting you and if you require any guidance, get in touch and we will be keen to assist you.

What is an acceptable deposit for tenants in Petersfield?

Posted on April 25, 2018 by colin_williams

While there is a considerable amount of focus on the up-front costs associated with buying property, and how this can be harmful to people looking to step on to the property ladder, there is not as much focus on the initial costs associated with renting. Continue reading “What is an acceptable deposit for tenants in Petersfield?” →

Midhurst: Help On Rental Costs Is Coming…Next Year

Posted on January 17, 2018February 8, 2018 by colin_williams

In recent times, it is positive to see a greater level of assistance being offered to first-time buyers. Buying a home can be a daunting challenge, but it is also an expensive activity. The mortgage is the main issue for most buyers, but the size of deposit required to buy a house presents a sizable challenge, even in Midhurst. This is why steps like the removal of stamp duty for first-time buyers is a move that should be acknowledged and praised.

However, it would be wrong to think that only first-time buyers need assistance. The cost of renting property is also expensive, and there are many up-front costs associated with this activity. Some of the up-front costs in renting include:

The first month’s rent in advance
A deposit, sometimes up to two months’ worth of rent
Letting fees
Removal fees

According to figures provided the home.co.uk website, the average rent in Midhurst, at the end of January 2018, stands at £994 per calendar month. The average rent for a one-bedroom property for the same time-frame is listed as £676 per month and for a two-bedroom property, the average rent is £947 per calendar month.

The cost of moving in Midhurst can be prohibitive

A tenant moving into a two-bedroom property in Midhurst, and being asked to provide two months’ worth of rent as a deposit, will easily find themselves paying more than £3,000 in up-front costs to move into property. This is a huge sum of money for one person or a household to find at short notice, and you can see why this acts as a barrier to moving into rented accommodation.

You should also see that the cost of moving property on a regular basis can be very expensive, even if the tenant maintains the condition of the house and receives the majority, or all, of their deposit back. Studies find that the average letting fee is around £220 but there has been plenty of anecdotal evidence to suggest that letting fees of more than £1,000 have been applied. Returning to the Midhurst figures, the up-front costs of renting a two-bedroom property could rise to more than £4,000 in this situation.

Changes are coming in the rental market

Therefore, it is positive to hear the Government is looking to make changes in this area of the rental market. It has been announced that letting fees will be banned. There is also a motion to limit how much of a deposit can be asked for, with current suggestions saying that a limit of six weeks’ will be applied. This may still lead to a high figure, but it is lower than that two months’ rent, and it will provide a maximum figure for tenants to consider and use in their budget.

These steps are positive for tenants, but sadly, it doesn’t look as though they will be introduced this year. It is believed the Government will bring these measures in together, with spring of 2019 the likely time-frame. This means people looking to move in 2018 will not benefit, but in the future, there will be financial assistance for tenants.

If you are looking to rent in Midhurst, come and speak to the local letting specialists. At Williams of Petersfield, we provide expert guidance and advice, and we look forward to helping you soon.