PH House Letting Gurus...
Discussion
OK - So I've found a lovely place in Henley to rent. 2-Bedroom cottage. Nice kitchen, the works...
Now comes the moment of 'negotiating' and all that jazz. Being a first time renter, what exactly is a good starting point of negotiation?
Do people really negotiate much with regards to lettings?
How often to rentals actually go for the advertised 'pcm' price?
Any help much appreciated!
Now comes the moment of 'negotiating' and all that jazz. Being a first time renter, what exactly is a good starting point of negotiation?
Do people really negotiate much with regards to lettings?
How often to rentals actually go for the advertised 'pcm' price?
Any help much appreciated!
As a landlord I was lucky and always got the advertised price - mainly beacuse we allowed children and pets.
As a tennant I would try to negotiate. It all depends on how much demand there is for that type of house in Henley. What the landlord will have to factor in is - getting a reduced rent say £900 in stead of £1000 would be better than having it sit empty. remember the landlord will be liable for bills whilst empty and property sat empty is at risk of burgalry etc
As a tennant I would try to negotiate. It all depends on how much demand there is for that type of house in Henley. What the landlord will have to factor in is - getting a reduced rent say £900 in stead of £1000 would be better than having it sit empty. remember the landlord will be liable for bills whilst empty and property sat empty is at risk of burgalry etc
Landlords will be flexable on the rent up to a point. The agent just act as a go between so you are not negotiating with them (however they will take a % of the rent as their management charge so they won't want it too low).
I'm not much of a guru on the rental market in the city however I do know yields are under pressure in all city's. What you need to remember is - the landlords options are to hold out for another tenant who may pay £50 extra per month or he has you at a cheeper rent.
His problem being that waiting for the asking rent might take him 3month. Not only is he loosing out on his rent, but he is paying for the mortgage on that property as well out of his own pocket.
What I suggest you do is go on http://www.myhouseprice.com/ and see what the landlord actually paid for it. He will no doubt have a mortgage on it as all buy to let landlords do - he'll be geared up to around 80%-85%LTV times the amount of the mortgage by about 8% which is what the banks stress their cashflows to (giving away secrets here). That will work out his payments on an interest only mortgage - you'll then know exactly how much he needs to make from the rent just to cover his mortgage payments.
Work up from there - I'm looking at from a Lenders point of view, I'm sure some private landlords might have a different take on it.
I'm not much of a guru on the rental market in the city however I do know yields are under pressure in all city's. What you need to remember is - the landlords options are to hold out for another tenant who may pay £50 extra per month or he has you at a cheeper rent.
His problem being that waiting for the asking rent might take him 3month. Not only is he loosing out on his rent, but he is paying for the mortgage on that property as well out of his own pocket.
What I suggest you do is go on http://www.myhouseprice.com/ and see what the landlord actually paid for it. He will no doubt have a mortgage on it as all buy to let landlords do - he'll be geared up to around 80%-85%LTV times the amount of the mortgage by about 8% which is what the banks stress their cashflows to (giving away secrets here). That will work out his payments on an interest only mortgage - you'll then know exactly how much he needs to make from the rent just to cover his mortgage payments.
Work up from there - I'm looking at from a Lenders point of view, I'm sure some private landlords might have a different take on it.
It's very simple, how many other people want it and how much are they willing to pay versus how much do you think it's worth, how much are you willing to pay.
The hard part is knowing the above, you usually have to try and work it out - how attractive is the property at the advertised rent, how good/popular is the location etc. The easiest way is by comparing it to other properties in the area.
All national/regional/etc. advice is pretty useless, though I guess it gives you something to work with if you have nothing else. Some will go for the advertised rent, some will go for more, some will go for less - is that really helping you ?
Having said all that, the answer to your question is that it's usually worth trying to negotiate. If you have looked at similar properties that you like, this is a good starting point to justify your negotiation.
The hard part is knowing the above, you usually have to try and work it out - how attractive is the property at the advertised rent, how good/popular is the location etc. The easiest way is by comparing it to other properties in the area.
All national/regional/etc. advice is pretty useless, though I guess it gives you something to work with if you have nothing else. Some will go for the advertised rent, some will go for more, some will go for less - is that really helping you ?
Having said all that, the answer to your question is that it's usually worth trying to negotiate. If you have looked at similar properties that you like, this is a good starting point to justify your negotiation.
Mark H 1984 said:
Landlords will be flexable on the rent up to a point. The agent just act as a go between so you are not negotiating with them (however they will take a % of the rent as their management charge so they won't want it too low).
I'm not much of a guru on the rental market in the city however I do know yields are under pressure in all city's. What you need to remember is - the landlords options are to hold out for another tenant who may pay £50 extra per month or he has you at a cheeper rent.
His problem being that waiting for the asking rent might take him 3month. Not only is he loosing out on his rent, but he is paying for the mortgage on that property as well out of his own pocket.
What I suggest you do is go on http://www.myhouseprice.com/ and see what the landlord actually paid for it. He will no doubt have a mortgage on it as all buy to let landlords do - he'll be geared up to around 80%-85%LTV times the amount of the mortgage by about 8% which is what the banks stress their cashflows to (giving away secrets here). That will work out his payments on an interest only mortgage - you'll then know exactly how much he needs to make from the rent just to cover his mortgage payments.
Work up from there - I'm looking at from a Lenders point of view, I'm sure some private landlords might have a different take on it.
Very useful, Mark. Thanks for that.I'm not much of a guru on the rental market in the city however I do know yields are under pressure in all city's. What you need to remember is - the landlords options are to hold out for another tenant who may pay £50 extra per month or he has you at a cheeper rent.
His problem being that waiting for the asking rent might take him 3month. Not only is he loosing out on his rent, but he is paying for the mortgage on that property as well out of his own pocket.
What I suggest you do is go on http://www.myhouseprice.com/ and see what the landlord actually paid for it. He will no doubt have a mortgage on it as all buy to let landlords do - he'll be geared up to around 80%-85%LTV times the amount of the mortgage by about 8% which is what the banks stress their cashflows to (giving away secrets here). That will work out his payments on an interest only mortgage - you'll then know exactly how much he needs to make from the rent just to cover his mortgage payments.
Work up from there - I'm looking at from a Lenders point of view, I'm sure some private landlords might have a different take on it.
Gives a good starting point. I have a figure in my head which seems to cover his theoretical threshold and is also just below the area average.
Always gotta start with a figure you know they will say no to
Cheers everyone.
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