For Landlords...don't go for the money, go for the numbers

 

For Landlords...don't go for the money, go for the numbers.

As we start to warm up for our Christmas market, I must bang my drum and give my Landlords some important advice. This being, go for the numbers and not the money.

I have experienced many Landlords feeling uncomfortable and slightly bemused as to why they should be reducing their asking prices, when they have been use to ascertaining a rent level for a number of years. I get it. By reducing your asking price, you fear that you maybe assisting along with other ill-thought of Landlords by creating a negative market. Further to this, Landlords feel that they may be harming the personal brand of their property. 

Why go for the numbers?

However, let me ask you this: if you only have one fish on the deck (i.e. one Tenant option comes along) and yes they can pay your asking price, are you going to take it? Many of you may of course say yes. However, what have you got to compare it to in terms of tenant candidacy? Another question from me, do you think that a company would hire their employees in this way? Don't you think that a company would be best advised to interview a number of candidates and only when they have a number of fish on the deck to choose from, that the selection of the suitable employee is worth making? There is nothing worse than the selection of a deadbeat employee right?

In my time as a Letting agent in London, I have seen too many examples of Landlords shooting for the stars on pricing and achieving a very little amount of viewing activity. The result maybe eventually getting that Tenant find with your asking price but by this point you maybe just relieved to have your property let. Six months later, I am contacted once more by a Landlord and they tell me the property is back on the market, siting reasons such as: terrible experience, Tenant ruined my property, Tenant was a nuisance, Tenant lost his job, Tenant ran away and left the property vacant.

My Advice

My advice is therefore: minimise your risk and sensibly price your property so that you have a steady stream of viewing activity. Gain multiple Tenant prospects wanting your property. There is nothing better than whittling down a choice of Tenant options. Give yourself the best chance of having a really great quality of Tenant and most importantly the best Tenant personality for you. 

I always like to say, if the price is right - the people will come.