Copy
Trouble seeing this e-mail? View it in your browser



   
E-mail not loading properly? Click here to view it in your browser

In contrast to popular belief, the automatic assumption amongst landlords is not “as much as possible!”
 
When assessing what rental figure you should market your property at, you need to consider what is available at the time you are marketing. It is not sensible to think “well, it rented for £800 a month a couple of years ago and rents are up 10% according to that London based newspaper, so I guess £880”…when another apartment in the block with a sunnier aspect is being marketed at £850pcm.
 
You should also consider the situation you find yourself in. If you’ve just received the keys to a new buy-to-let, you should price it cautiously so that it lets as soon as possible. If, on the other hand, you’ve just received your month’s notice from your current tenants, you have a little time to ‘test the market’, safe in the knowledge you have a month to ‘tweak’ things if needed.
 
Having said that, I still wouldn’t advise automatically extracting the maximum figure you deem possible from tenants. By offering a well-presented property at a realistic or favourable price, you will get to choose from a wider pool of people. Besides, even if you do find tenants who sign up for a bumper rental figure in excess of what the property is reasonably worth, how long do you think they’ll stay put?
 
Consider the fact that tenants will typically stay longer in a property they feel they are getting a good ‘deal’ from. This will help you to minimise your tenant turnover, wear & tear and void periods, all of which will help you make more money in the long-run (and with less hassle). Since the tenant fees ban, the door has been opened even wider for tenants to up and leave at little cost, which they’re likely to do if they see something similar to rent at a better price.
 
Another reason to be realistic from the start is that the first fortnight of marketing is when you’ll get the most interest. If it’s priced too high initially tenants may dismiss it and even when it’s reduced they’ll still disregard it having seen it a few weeks earlier, remembering they’d previously rejected it “for some reason”.
 
Bear in mind the actual marketing figure you use too. I’ve written previously how people search the property portals online and filter properties by price. For example, you’ll lose out on a huge number of potential tenants that would be happy to pay up to £1,000pcm if you try and push the asking price to £1,050pcm.
 
I’d prefer to be conservative on the rental price and receive it 100% of the time from long-term tenants who appreciate living there, rather than squeezing the most I can from someone who ends up either not being able to afford it or deciding it’s not worthwhile staying.


This article was featured in...
      
Chichester Property News -
Issue 43 - October 2019


"How low can interest rates go?",
"Can flipping property still make money?",
"What are Right to Rent checks?",
and the Community Focus is "Stonepillow"

Plus, the latest average property values, rents and yields in Chichester.

Stonepillow’s annual fundraising event, The Big Sleep Out, takes place on Saturday 19th October in the grounds of Chichester Cathedral. The event kicks off with a live performance at 2:00pm, as everyone arrives to start building their cardboard shelters before putting them to the test for the night. Participants get sponsored to sleep out to raise vital funds for the charity and increase awareness of homelessness in the local area.

Stonepillow offers shelter, information and support that people need to make positive changes and find independent accommodation they can call home. The charity supports people 365 days a year in Chichester, Bognor Regis and Littlehampton and has 97 clients in their accommodation on any given evening.

Laura Bulbeck, PR & Events Manager said, ‘”The Big Sleep Out is a fantastic event which sees individuals, groups and businesses in the community coming together to help end homelessness. We encourage everyone to get involved, make a difference and help us to raise as much as possible.

Stonepillow’s CEO, Hilary Bartle, added “As it is our 30th year we are keen to raise £30,000 to equal £1,000 for each year we have been open. This is important now more than ever as we see more people rough sleeping and vulnerable. Declining public funding means we have to do more for less each year.  £30,000 would enable us to provide more targeted support to the most vulnerable people on our streets and towards services that support them from street to a stable home.” 
 

The Big Sleep Out doesn’t aim to replicate homelessness but raises awareness and educates communities on the harsh realities of sleeping rough.

To join in with The Big Sleep Out please register at www.stonepillow.org.uk. It costs just £15 per person, which includes food and entertainment.

 

For more information about the charity, contact Stonepillow on 01243 537934 or admin@stonepillow.org.uk


 
"Which streets in Chichester have had the most sold signs?"

"Which month is busiest for Chichester’s estate agents?"

"Advice for landlords wanting a ‘let only’ service"
Please tell others about this newsletter so
they too can receive it free each week.

CLICK HERE TO FORWARD THIS NEWSLETTER


(click the headline to read the full article)
LOCAL

Detail of first Whitehouse Farm homes approved

Opposition grows to housing target of 12,300 homes across Chichester district

Whitehouse Farm: Construction traffic 'a real concern'
NATIONAL

House price growth 'almost ground to a halt'

UK house prices fall amid no-deal Brexit fears

UK’s slowing housing market hits stamp duty revenue

 
2 bed flat in Chichester,
£180,000, 5.3% yield
Summary:
2 bed flat in Chichester
Listed for sale on 30/05/19 @ £210,000
Now = £180,000
Rent = £795pcm
Yield = 5.3%

Last sold for £99,950 in 2001 (+80% in 18 years)
 
Two-bedroom apartments close to St Richard's Hospital in Chichester are popular with landlords, as they can be safe in the knowledge that they will rent quickly to Doctors, nurses and hospital workers, be they a couple or two sharers. There are some older ex-council flats in the area along with some that have been newly-built in the past 5-10 years, whilst this flat falls in-between these, having been built in 2001.

Everything looks original from 18 years ago, meaning it's getting to the stage of needing a refurbishment to the kitchen & bathroom, although it seems to have been kept in decent condition given its age. It could definitely do with re-decoration and re-carpeting though. Unfortunately it has electric storage heaters, which are more difficult to upgrade to what many tenants now see as a 'minimum requirement' i.e. gas central heating.

The first and current owner of the flat paid £99,950 when it was new 18 years ago, meaning it has increased 'only' 80% to its current asking price of £180,000 (which has dropped significantly since being first marketed in May for £210,000). I say it's 'only' increased 80%, as properties as a whole in Chichester have increased an average of 130% in this timeframe (with flats a less profitable 110% up).

Once the property is re-decorated and carpeted it should rent for £795pcm. This would mean a 5.3% rental return based on the current £180,000 asking price. Bear in mind the ground rent and service charges though, which are relatively high for this property. Flats built between 2000-2008 seem to suffer from some of the highest service charge demands for some reason; in this case they amount to £1,345 a year (plus £100 ground rent). That instantly brings the rental return down to 4.5%, and it could be the reason why this otherwise good sized, well located and reasonably priced flat has failed to sell.


The property is on the market with Purplebricks and full details can be found on Rightmove via the following link: 
https://www.rightmove.co.uk/property-for-sale/property-74029339.html

 
2 bedroom apartment in Chichester
(Longley Road) 
£950pcm
  • 2 double bedrooms
  • Ground floor with high ceilings
  • Modern kitchen & bathroom
  • Allocated parking
  • Available early-October
2 bedroom house in Westergate
(Nyton Road) 
£925pcm
  • 1 double bedroom & 1 single
  • Separate lounge & dining room
  • Private rear garden
  • Large driveway
  • Available mid-October
2 bedroom apartment in Tangmere
(Hangar Drive) 
£895pcm
  • 2 double bedrooms
  • Huge open-plan living area
  • Integrated appliances
  • 2 parking spaces
  • Available mid-October

 

There's a little over a week until the government's consultation on the banning of section 21 closes.

It'll take you around 20 minutes to complete (they seem to have made it this way to lower engagement from busy landlords) but I would strongly urge you to do so - if you don't you really won't be able to moan when it is outlawed and evicting bad tenants becomes even more difficult (two-thirds of tenancies are ended by tenants and most landlords only use section 21 aka the 'no fault' notice to end problematic tenancies because doing so via the courts is a lot more difficult...)

You can put forward your thoughts at 
https://www.gov.uk/government/consultations/a-new-deal-for-renting-resetting-the-balance-of-rights-and-responsibilities-between-landlords-and-tenants

See you next week!

CLIVE JANES
Owner
t: 01243 624599
Voted 'Best Letting Agent in Chichester 2018'
with a 5/5 average rating from 106 customer reviews
Please tell others about this newsletter so
they too can receive it free each week.

CLICK HERE TO FORWARD THIS NEWSLETTER
Facebook
Facebook
CRJ Lettings Homepage
CRJ Lettings Homepage
Chichester Property News
Chichester Property News
Twitter
Twitter
Copyright © 2019 CRJ Lettings, All rights reserved.


unsubscribe from this list    update subscription preferences 

Email Marketing Powered by Mailchimp