Worse flat than mine just let for more money

[JK0]

Arrrgh!

I spent 4 months refurbishing a flat in a block here in Reading last year. (Redecorated, new carpets & Miele appliances.) It let a few weeks ago for £900 pcm, after sitting on the market for two months. You should have heard the rude comments people made about it!

An identical flat two floors above, that has none of the refurbishments, just let for £1000. Both were marketed by local agents. What am I doing wrong?

[amy131]

I am seeing this a lot at the moment, rooms in houses not as nice as mine being rented out for up to £100 pcm month more. Also flats and houses advertised at extortionate prices, there has been a facebook discussion going on in my area over the past few days in response to some recent adverts. This is what I am seeing in adverts for the expensive rooms and houses:

1) Walls are painted grey
2) Carpets are grey
3) Kitchens cabinets are grey
4) Beds are dressed with a throw and scatter cushions - shades of grey and ochre.
5) Grey divan beds with velvet headboards - I don't personally like these but if a room has one of these its marketed as 'deluxe' even if the place looks pretty shabby.

[amy131]

In your case it could have just been timing. I buy good appliances also, they last so its cost effective for me, I don't think some even notice these things though. I have been renting out refurbished rooms with very competitive rents and had good long term residents but things have been changing since later last year. I am similarly questioning what I am doing currently and doing a bit of research, there has been quite a change with regards to the people I am getting interest from now.

[Celibin]

Well we have grey and still no luck

[Whit]

I have properties in Milton Keynes and I’m finding that over the last few months the rental amounts have increased.

I tend to repaint (magnolia) and clean/replace the carpets every few years or when the tenant leaves if they’ve been there for a while.

I’ve been increasing the rents when properties become available and I’m finding that people from London are moving into the area and are prepared to pay the amount that I’m asking. It’s probably because Milton Keynes is so much cheaper than London rental prices. I’m also finding that because my rents are slightly higher that I’m attracting a better quality tenant.

Time will tell as to whether they are better tenants but so far I haven’t had any issues.

[jpucng62]

I find this happens quite often and its just about who is looking at the specific time and how savvy they are.

Just because the other flat was advertised at more than yours doesn't mean they got it and you have to console yourself with the fact that if you had had to wait for that particular tenant that would have been another month void.

A month empty would take nearly a year to make up in the extra rent so its not that bad. And you can raise the rent in 12 mths

What rude comments did you get - can you take anything from them to make your flat more appealing next time?

[boletus]

What am I doing wrong?

1. Taking 4 months to do a straightforward refurb that would have taken a professional team a fortnight.
2. Not having a tenant ready and lined up for when it's finished.
3. Using a letting agent.
4. Using a letting agent you don't get on with.
5. Selecting tenants who won't do effective viewings for you.
6. Putting all your eggs in one basket. i.e one property type in one London satellite town.
7. Not maximising rents during the good times.
8. Underselling.
9. Annoying the neighbours.
10. Making it personal (it's just business).

[amy131]

I have put my rent up a bit for a room I am now advertising, also dressed it like some I have seen advertised. I am now getting enquiries from those in more secure higher paid employment again.

[Jon66]

I think a lot of it is simply taking the time to present the photos. I.e. no clutter at all, bright, very clean, and also hitting the right level of rent. Too cheap and you get a different kind of tenant, too expensive and it won't let. I find my prices are always toward the top of the band for that type of property and I have so far had good tenants.

[jpucng62]

1. Taking 4 months to do a straightforward refurb that would have taken a professional team a fortnight.
2. Not having a tenant ready and lined up for when it's finished.
3. Using a letting agent.
4. Using a letting agent you don't get on with.
5. Selecting tenants who won't do effective viewings for you.
6. Putting all your eggs in one basket. i.e one property type in one London satellite town.
7. Not maximising rents during the good times.
8. Underselling.
9. Annoying the neighbours.
10. Making it personal (it's just business).

Harsh!

Extra characters to make the post work!

[JK0]

Boletus, you & I will never agree about these things. Just so you know, you are now on my ignore list, so I won't see any more of your jottings. Maybe perhaps I should also be on yours, so I don't annoy you with my posts?

[boletus]

Nah, I quite enjoy reading your rants and learning from your mistakes

[Piffy]

I put a terraced house up for rent in a street where there are a lot of identical rented houses. My letting agent suggested listing it at £700 a month. I said try it at £800. As soon as it was listed 3 applicants. We chose 1.
In your case perhaps you listed it too cheaply in the first place.
(sometimes I wonder if the letting agents are on the side of the tenant)

[JK0]

I put a terraced house up for rent in a street where there are a lot of identical rented houses. My letting agent suggested listing it at £700 a month. I said try it at £800. As soon as it was listed 3 applicants. We chose 1.
In your case perhaps you listed it too cheaply in the first place.
(sometimes I wonder if the letting agents are on the side of the tenant)

Thanks. I did actually have it up for £950 to start with, but had very little interest. I don't think marketing in November helped, but I had to wait two months for the carpet to arrive, having been told it would take three weeks.

[OneSmallStep]

I tend to look at my rentals in a different way. I don't want to be the most expensive for the area. Look at it from a tenants point of view. The person in the expensive flat will be thinking they are paying over the odds. When times are challenging (as they are now) then they could be looking for cost savings.

The person paying the cheaper rent will realise what a great deal they are getting. They will tend to look after the property and want to stay as long as possible. Therefore less voids and turnaround of tenants.

If you have one month of voids, plus the hassle and redecorating of change around. Any additional monthly benefit has gone immediately. Long term happy tenant is the goal. (providing they pay). If your happy with the tenant & the current rent then don't worry about what someone else is achieving. It could be a short lived win for them.

Either that or sack the agent.

Although I am probably wrong...