Rental market: is it controlled by tenants or landlords?
You’d be mistaken for thinking that becoming a landlord is a sure bet. It isn’t, but it can be if you are prepared to sacrifice your time and your money and offer a good service.
Regardless of what you read in the media demand for rental properties in West Yorkshire is good. However, the rental market is extremely competitive. With more and more properties to choose from it’s the landlords offering a great service that is coming out on top.
No longer is it a foregone conclusion that an available property will be let simply because it is empty. You have to offer the right product and service at the right price. Today’s tenants are families, professional couples, divorcees and entrepreneurs who have suffered at the hands of the economic crisis. They are looking for long-term contracts, not stop-gaps and as such expectations are much higher.
Properties that are within good school catchment areas, offering good quality family accommodation and decorated to a high standard, with the fixtures and fittings we all come to expect, are flying off our books. In short, tenants are not prepared to compromise.
What about prices?
Don’t inflate your prices; the days of charging over the odds for a rental are gone; especially for properties that are looking a little tired! Our average rents for appealing properties in Wakefield average out at £580 per month. This is the most popular sum potential tenants are prepared to pay for a well presented 3-bed semi-detached home in a good area. Moving up the scale a well presented 4 bed detached home in a good area is averaging out at £800 per month and a 2 bed flat is consistently at the £500 mark. In our experience, this is the pricing structure you should be looking at. Inflated rental charges are not a winning formula and prospective tenants don’t have time to barter.
Changes in the rental market
The rental market has definitely changed and some landlords are finding it hard to adjust to the fact that their properties are not cash cows. Invest in your property, market at a realistic price and you’ll find the right tenant.
Simply put it is a tenants market right now and it is likely to remain so for some time to come; so if you’re serious about being a landlord be warned.
By Nichola Wallis, Lettings Manager at Holroyd Miller