UK Landlord Forum / Life

Hello. In really stuck what to do. I'm an accidental landlord. My old 2 bed flat had been rented out for a few years at 1700/month never empty. I've had not ideal tenants with late payments and small damage. Last tenants left last week and I'd dropped price to 1500 to get someone in as agency said really needed to do this and tenants are looking for a deal. Still only offers I've had were two today at 1350/month. One said they'd treat apartment very well but then she listed several minor gripes like the smell of the fridge or shared bins not being empty outside. The other is a freelance but offered to pay 6 months upfront.  I got another agent out for a second opinion and he thought it would fly out for 1500 but it would only be next month or so before getting someone. The background is for my questions of its obviously not a great market for renting out right now but is it really that bad in that I should accept a largely lower offer? Also given I've not met the applicants and the past tenants I've not been terribly happy with is there any advice how to improve quality of tenants? Genuinely confused what to do. Thanks

It depends on whether you have a mortgage or need the income now.I have always taken the attitude that a lower rent is still a lot less costly than an empty place. Then again,a really bad tenant can cost you greatly more than an empty place.No easy answers.I would be checking if the free-lancer seems kosher,and maybe try to  bargain a bit higher.Avoid the nit-picking woman.Agents don't care about the trouble they could be bringing to you,so I would insist on at least a personal phone call or Zoom.That said,when it comes down to it,you never know a person until they are living in your house. I used to think I was a good judge of character,not any more.

I do not perceive a notable slowdown in the letting market... so maybe something else is at play here?

You say you reduced it to £1,500 per month... from £1,700 per month... and have had offers of £1,350 per month. Agents will tell you whatever they can to help you get the property off their books, as that's when they earn. And there's plenty to be said for being patient... but dropping £1,700 to £1,350 is a big %age drop... and you need to assess, objectively, whether you've just had it good for some time and your property has been punching above its weight for some time, or whether the area itself has become less desirable (always in comparison to other areas, which may have become more desirable while your area has remained static)... and, lastly, you're not really indicating whether you've done your own market assessment of similar properties - which should take you ten minutes. What about the property itself, could it be a little dated, have you made any improvements or given it a fresh look?

Like HeavyKarma has suggested, I would also veer away from someone who appears like they may be a high maintenance Tenant from the outset... if they're kind enough to advertise these warnings to you the most polite thing you can do is take heed. But, additionally, unless you're happy chucking away £1,350 plus per month away... because there are costs with an empty property... I'd quickly realise that even though you're a supposedly accidental Landlord (no-one is, really, they all made a choice at some stage) you are still supposed to act as if this is a business for you.

The trick here is in being objective and emotionless. Never expect that because it once achieved £1,700 this is the form forever. Maybe those were just the good times you will look back fondly on, as you are writing up your classified ad to sell the Maserati. At least with £1,350 a new Ford will be on the cards... nothing wrong with Fords, I just wouldn't have one. My neighbour has one, but he works for Ford, so I think he really has to. He told me the discount he gets... it's nothing more than I've negotiated with any Dealer. He seems pleased with it, tho'. I digress...

All that said... £1,350 is unpalatable to you... but you can surely bump them up to £1,400... then you're within spitting distance of a figure you'd already emotionally accepted. You aren't gonna get the £1,700 again - not if you are listing it for £1,500, right? I don't like price drops when I see them... it makes me think there's something wrong... and I can smell a deal right at that point... if someone was desperate enough to drop the price, then they'll probably drop it again.