Great ‘How to haggle down rent’ Hunt

mick_s

puffykat2000 wrote: »

We would like to deal with a LL privately and instead of asking for rent reduction we would ask if we could split the deposit over a few months. Has anyone had any experience of doing this successfully?

This is something we offer out tenants if they are struggling for a deposit - normally because it is not returned by their existing LL.

We work with people and there circumstances and do detailed background checks - which is normally local people and what they know about them - our properties are contained in a very small area - one is actually an hairdressers - a good source of info - especially as her husband owns a corner shop

mick_s

PayDay wrote: »

It seems like some landlords are getting very scared over this thread. As landlords we run a business and have to take the rough with the smooth. It's all about supply and demand and now the market is flooded with properties to let, then a wise landlord will reflect that in his rent.

All of this is basic stuff and should have been reflected in your business plan, mick. The days of putting rents higher and higher and threatening to raise rents if tenants dare question the landlords, are gone my friend.

We are in a position where we can choose our tenants - we actualy have people waiting for one of our properties to come empty, some have waited for 2 years to get one. In fact when buying we bought properties for specific people.

We are also in the position that we can pick and chose our tenanants - if it really came down to it we would be OK at 50% occupancy - and struggle through at 33% - so business plan is working OK.

Our tenants get a very good service and an excellent house with below market rents for our existing tenants - usually when we get new tenants in it then goes to market value rents and we get about a 20% increase and then they do not get a rent rise for a few years - so people are welcome to move on.

I only have a problem with one of our tenants - the reason for this is that she constantly complained of problems with her back boiler, in the end the 20 reports of pilot light going out and unable to light it (so I went to light it and had gas fitter in a couple of times) were because she wanted a new fire because she no longer liked the look of it (though it had been OK for 5 years from her moving in) - after explaining to her that it would mean replacing the full central heating system and I was unwilling to do this - there has been no problems with it since. If they did decide to leave they would face a 20% rise in their rent to obtain an house of lesser quality - but a £8 a week increase, instead of £3 or £4 that other properties are paying cheers me.

Alan_Cross

Excellent news, guys. A bit of upward pressure:

http://www.insidehousing.co.uk/story.aspx?storycode=6501648

Let's see them 'haggle' their way out of that...

mick_s

In our area the councils have taken to using Local Housing Allowance Rates for determining what average rents are in the area:

http://www.doncaster.gov.uk/Living_in_Doncaster/Homes_and_Housing/Help_with_Housing_Costs/Local_Housing_Allowance/Local_Housing_Allowance_Rates.asp

This is what they will pay for housing benefits.

This makes it really simple for setting rents, based on number of bedrooms in the property - then people can adjust what they determine the house to be worth in relation to this - poor quality then rent should be less, good quality and landlord may want more.

If a tenant can get a property below this average price they will be paid the difference (up to a maximum of £15 per week) without affecting their other benefits.

I'm secretary to the local TARA (tenant and residents association) and work very closely with the council and police to help improve the area.

I will also gladly advise tenants on problems they have with their landlords, which there are quite a few.

tbs624

mick_s wrote: »

In our area the councils have taken to using Local Housing Allowance Rates for determining what average rents are in the area:

http://www.doncaster.gov.uk/Living_in_Doncaster/Homes_and_Housing/Help_with_Housing_Costs/Local_Housing_Allowance/Local_Housing_Allowance_Rates.asp

This is what they will pay for housing benefits...

LHA was rolled out *nationally* on April 7 2008 - it's applied to all new claim private sector tenants, and for those tenants on Housing Benefit who change address/move into private sector rental property

franklee

Alan_Cross wrote: »

Excellent news, guys. A bit of upward pressure:

http://www.insidehousing.co.uk/story.aspx?storycode=6501648

Let's see them 'haggle' their way out of that...

Easy just find a landlord who's been in business long enough to not have paid bubble prices for the property AND who is on a tracker so his interest rate will be 0.5-2.5% of peanuts. I'm sure he can do a good deal, after all why would he want voids just to suit the johnny-come-lately lanlord?

PS: Why exactly are you complaining, you've had a massive increase in the value of your property and now have the lowest interest rates in the history of the Bank of England If you're not making money out of that then you must be doing something seriously wrong!

socrates

The low rates will not last long

MissMoneypenny

mick_s wrote: »

In our area the councils have taken to using Local Housing Allowance Rates for determining what average rents are in the area:

http://www.doncaster.gov.uk/Living_in_Doncaster/Homes_and_Housing/Help_with_Housing_Costs/Local_Housing_Allowance/Local_Housing_Allowance_Rates.asp

This is what they will pay for housing benefits.

This makes it really simple for setting rents, based on number of bedrooms in the property - then people can adjust what they determine the house to be worth in relation to this - poor quality then rent should be less, good quality and landlord may want more.

I checked the Local Housing Allowance on my local council's website, for 2 and 3 bedroom houses. The rental asking prices are now less than Housing Benefits Local Housing Allowance.

A 2 bedroom house on LHA is £650per month (£150per week), but letting agents are now dropping the asking rents to £600 - £625 as there are so many looking for tenants. A 3 bedroom was just let for £600pcm.

2horsevillage

Does anyone know if my landlord is breaking any rules by not having our oil fired central heating boiler serviced for the last 5 years.

500Triumph650

Alan_Cross wrote: »

Excellent news, guys. A bit of upward pressure:

http://www.insidehousing.co.uk/story.aspx?storycode=6501648

Let's see them 'haggle' their way out of that...

Another lame argument.

The article is actually about the fact that allowances are not keeping pace. That's downward pressure. A lot of landlords won't have claimants anyway and those who do claim are going to be finding it hard to make up the difference.

Two examples of dropping rents for you.

The place I rented between Jan and June '08 for £795 has just been let after a 6 month void for £695 or less. The asking price was £695 but he may have had to take a lower offer.

The freshly refurbished two bed seaside bungalow I am in now is £900 from an asking price of £950. Six months later an almost identical one two doors down, also just refurbished, had a two month void at £899. But this one is a bigger three bed. It has just been let but, once again, I expect that a rent lower than the asking price was accepted. :think: