How is the letting market these days?

Scarum

I have planned to let my house at the end of the summer and wondered how the letting market was in the east of England. It's a first time for me so I have nothing to go by.

I will be using a local letting agency as I will be out of the country.

Thanks for any input on this subject.

Premier_2

Rents are climbing but not for everyone <clicky

Landlords are reaping the benefits of falling house prices as the demand for rented property grows.
Fears of a property crash have pushed up rents by 14 per centover the past year, according to the latest report from Paragon Mortgages. ...

The Paragon buy-to-let index shows rents have risen by almost 6 per cent in the Southeast. But the strongest growth was reported in East Anglia and the Southwest where rents have risen by 36.5 per cent and 34 per cent respectively.
Yorkshire landlords have also enjoyed strong growth of 21.3 per cent while those in London saw rents rise by almost 13 per cent. ...

But not all investors are filling their coffers. In stark contrast with the headline figures, some landlords are experiencing falls in rents, and increasing void periods.
It is all down to supply and demand, as tenants chase a limited supply of rental homes in some areas, while in others, a glut of rentals give tenants greater choice. In the most sought-after areas, the luckiest landlords can name their price and expect to get it.

Daily Telegraph 06 June 2008

scrummy_mummy_2

Where are you in E Anglia?
Places like Kings Lynn and other migrant worker communities can be a bit tricky if you leave your home entirely in the hands of a letting agent.
My sister worked in Wisbech as a letting agent and resigned because the agent she was working for was letting to gangmasters who were then using the properties to house literally tens of farm hand Lituanians....

Scarum

scrummy_mummy wrote: »

Where are you in E Anglia?
Places like Kings Lynn and other migrant worker communities can be a bit tricky if you leave your home entirely in the hands of a letting agent.
My sister worked in Wisbech as a letting agent and resigned because the agent she was working for was letting to gangmasters who were then using the properties to house literally tens of farm hand Lituanians....

I'm between Cambridge and Bedford, Sandy area. I'll have people keeping an eye on things!

tbs624

Scarum - contact your local Landlords' Association, via yellow pages or chamber of commerce. They'll be able to give you valuable advice and info on local rent situation etc, and also tell you which local letting agents are the best to use.

You'll need to read up on your responsibilities as a LL, even if using a LA, and thoroughly check that small print for things like renewals fees and the LA making profit on repairs that may need doing whilst you are away. (If you know a local handyman or small building firm you may want to channel all such requests direct to them).

Take a look at landlordzone online too.

Premier_2

Scarum wrote: »

I'm between Cambridge and Bedford, Sandy area. I'll have people keeping an eye on things!

That's good, especially if they are neighbours.

Ensure there is a restriction within any tenancy agreement restricting the number of occupants. e.g. if a 3 bedroomed house, perhaps a maximum of 5 occupants.

A property next to mine was being let recently through a Letting Agent. Soon the sign was replaced by a 'Let' sign and a couple of days later a lorry pulled up and offloaded about 10-12 mattresses onto the front lawn.
A quick call to the LA assured us that the property was only allowed to house a maximum of 5 people according to the TA, the mattresses were soon removed and the 'Let' sign changed back to a 'To Let' sign.

mlz1413

Hi Scarum, there is a company locally called Northwood (lots of office throughout country too), they offer a guaranteed rental income scheme - you get rock bottom rent, have to wait about 6 or 8 weeks for first payment which is a half payment and you have to sign up to a 12 month contract BUT you do get paid regardless of if they find a tenant or not.

If you are going to be out of the country this guaranteed scheme may suit you.

note add: I think there is also something about owner paying bills until tenant found - so check the small print!

MissMoneypenny

ARLA: Average rent down 9%
Monday, 09 Jun 2008

"While potential property buyers defer purchases – waiting to see if prices will fall further – and remain in rented accommodation demand for rental accommodation has been on the increase.

As such rent has been peaking at record high levels.

However, this trend appears now to be reversing with the average cost of a rented house down seven per cent, and the average apartment nine per cent, according to new research from the Association of Residential Letting Agents (ARLA).

"We are seeing corrections in individual locations throughout the country," said Ian Potter, head of operations for ARLA.

However, demand for property still outstrips supply in some areas. "

http://www.aboutproperty.co.uk/news/property-investment/tenants/arla-average-rent-down-9--$1226103.htm

TJ27

I've had two calls today from landlords, asking for advice because they haven't been able to find tenants. They were typical student houses in a very popular part of my city. The two landlords had simply not been able to find a group of students for the next academic year and sounded quite desperate. Both had bought quite recently and both said that they were really feeling the effects of the credit crunch.

It's very strange that I got two such calls today, after not having a single one in the last eight years.

Premier_2

TJ27 wrote: »

I've had two calls today from landlords, asking for advice because they haven't been able to find tenants. They were typical student houses in a very popular part of my city. The two landlords had simply not been able to find a group of students for the next academic year and sounded quite desperate. Both had bought quite recently and both said that they were really feeling the effects of the credit crunch.

It's very strange that I got two such calls today, after not having a single one in the last eight years.

Novices, eh?

Most student lets are agreed to before Easter when the exam period starts. If they are lucky they might find some desperate first year students come September/October else they'll be waiting until this time next year before they let their properties

TJ27

Premier wrote: »

Novices, eh?

Yup, I think you're probably right. Mind you, I've come across several landlords in the last few months who have only been able to get three tenants into a five let, for example. 10% of the population here are students but there are halls of residence going up all the time. Private rentals in trad student areas seem to be suffering quite badly.