UK Landlord Forum / Life

Hi everyone,

I was just wondering if landlords who take on a letting agent to find tenants for their property ever achieve the asking rental price that the agent advertises your property for? 

If not, would you say the estate agent is rubbish and that they over valued the rental price in the first place or is the current rental market down at the moment and therefore landlords have to accept a lower than asked for offer or risk having the property empty for a while?

Thanks!

From my experience, on various occassions, letting agents have found me tenants willing to pay the asking price. In one case, an agent even got me a tenant that was prepared to pay more than what me and the agent had agreed.

It's in the agents best interest to get you the highest rate possible, because agents generally charge a percentage for their service, as opposed to a flat rate.

Agents will usually value your property based on the current condition of the market. As I said, it's in their best interest to get the highest rate possible. However, there are a lot of empty rental properties on the market at the moment, so tenants are spoilt for choice, which means they can haggle. Some times it's worth taking a lower offer, because it's more expensive to have an empty property and receive no rent at all!!

That makes sense.  Thanks - my letting agent said that the rental market prices have gone down from last year. 

I just wanted to make sure because they tell me that they have shown people around, but no one was offering.  They go on to say that although it is a beautiful flat (1 double, 1 single/study) in a good location, people can get a 2 double bedroom flat for not much more nearby.  I've had to drop the price like you say - I don't want to leave it empty if I can help it!

Hey Noobie,
Have you tried marketing the property yourself? Is that something you would consider?
Also, does your letting agent advertise their stock on websites like Rightmove and Findaproperty..etc ?

Also might be worth checking out websites like spareroom.co.uk and rightmove to see how much other people in your area are asking for similar properties.

I haven't tried marketing it myself.  I'm overseas at the moment, so thought it would be hard to do with organising viewings etc. 

I'll have a look at spareroom and rightmove to see how much other people are offering though.  The agents are now saying that they think they will definitely get someone in now that the price has been dropped.  They gave the excuse that having a dehumidifier in the property is putting people off...

Hi again Noobie,

I usually self manage and I've found that you can usually get an even higher rate that what the letting agents will quote you if you are a bit canny about how you do things: group viewings, targeted adverts (find out who your property would be perfect for such as people who live nearby) or even using no deposit schemes.

One of my flats is let for £85 above what the market value that the lettings agents quoted me!

I've found in the past that some agents will tell you a higher price to get your business but others are really good at estimating what they can let a place for so it also depends on who you are dealing with and how much of a hurry you are to get the rent in...

Let me know if you want some pointers on getting a good rental price.

Tim

Just remember letting agents do provide a useful service, particularly if things go wrong. They can take the headache out of renting process. However, like anything no body does anything for nothing.

I am agree with you that letting agent provide a good service. All they are trying to do is check that you have a Job and can pay the rent. so most Landlords will check with your Employer.

Local knowledge is crucial so if you are an absentee landlord, i would suggest the agency is key unless you have a 'man on the ground' who knows the market.  It also depends on the type and location of your property, i.e. is it a fairly unique property or is it a property similar to others in an area with plenty of rental stock? If it is the latter then an armchair val is as accurate as anything but failing that, you'll need to trust your agent.  Make sure you've picked the right one!  A whole different ball game!

As for agent v self managed, people are comparing apples with oranges.  It depends on what your requirements are and how good the agent is.  A good agent is usually vital for an absentee landlord but if you are local to your portfolio and have the time and knowledge then you can easily run a portfolio yourself and get more control and a greater return.  Making the transition i recommend you use a business that supports you throughout with telephone advice etc.  I used a few industry contacts which really helped so let me know if i can assist.  Hope that helps! 

The biggest change is whether individuals can afford to buy property. Today, many young people can not get to the property ladder, which in turn this will mean more people renting the property and a larger number of newly created or first time home buyers to buy more units of housing or real estate.

And first-time buyers on the market found it increasingly difficult to afford to get on the property ladder, more and more people are no longer renting the property and property prices continue to rise, all have seen it slow in the past years.