How to work out what a fair rental price is?

QTPie

Ok, most of us know ways to work out what "looks like" a fair price in regards to negotiating the purchase of a property... but what about renting?

How can we tell if a rental price is fair or not? Admitedly, just like buying, a "letting price" will be what a landlord and a tenant can agree (if a landlord overprices his house, then it will just go unoccupied)...

... Also if you manage to negotiate a low rental price, are there extra risks involved? If we went for a 6 month (or 12 month) contract at a very attractive price, might we be a LOT more at risk of a price rise (or "out on our ear" ) on completion of that contract?

And another question. If a house is both on the market to let and to buy, would you be more wary of it? Would you worry that the owners would try to sell again towards the end of your contract?

I have a number of viewings of rental properties at the beginning of this coming week. There isn't much at all (about 3/4 properties) in the price band that we are looking at, so we are looking at a few that are priced higher (one of which has been on the rental market for almost 7 months).

Any tips about negotiating price? Last time we were looking for a rental property was just over 13 years ago :eek:

QT

Doozergirl

In my experience it's not like buying a house and negotiating the price as the choice is a lot smaller (for family sized homes anyway) it was more about finding a house in a condition that I'd actually be prepared to live in! We couldn't really exercise much choice on area either as the house was more important to me.

If the landlord is prepared to take a lower price then I don't think you're at any more risk of getting turfed out - it would cost as much as they made to change tenants and if tenants are decent, you don't want to lose them.

I've not really seen properties to let that I've thought 'how much?' like I do when looking at houses for sale.

QTPie

So landlords don't really tend to negotiate on asking price?

We are ideally looking at the £1750/£2000 a month area ("nice family homes" - as you say "somewhere you would be prepared to live in"). By the time that you take out the "student houses" (I live in a historical university city), that reduces the choice to about 3. One of the letting agents that I phoned (to look at a couple of properties that had unfortunately been let) has somehow talked me into seeing a maisonette for £2500 and what looks like a really nice house for £2700 (which has been on the rental market since August, but which the owners also have on the market to sell).

I guess with the last two, I am wondering how much it is likely to be a waste of time viewing them. Might be able to edge husband up to £2200 a month, IF the property was completely amazing, but....

QT

poppysarah

Don't forget property bee looks at rents on rightmove too

Doozergirl

Of course it's worth asking. If the market is small, as it seems to be, then anything that's been on the market is either rubbish or overpriced. Or both You have to negotiate on those.

It's just that there were so few available both times for us. It's hard to negotiate knowing something is new to market, the only thing suitable and therefore going to be in demand. The second one I thought was a really good deal anyway, I just couldn't have done it.

QTPie

poppysarah wrote: »

Don't forget property bee looks at rents on rightmove too

Definitely, thank you

It is useful for letting me know how long things have been on the letting market for and whether there have been any price drops already...

Nothing around to say what things actually let for though...

QT

QTPie

Doozergirl wrote: »

Of course it's worth asking. If the market is small, as it seems to be, then anything that's been on the market is either rubbish or overpriced. Or both You have to negotiate on those.

It's just that there were so few available both times for us. It's hard to negotiate knowing something is new to market, the only thing suitable and therefore going to be in demand. The second one I thought was a really good deal anyway, I just couldn't have done it.

Hhhmmm, wierd isn't it. There does seem to be a VERY small demand for larger family houses (bigger, nicer, 4/5 bedroom houses around here). I guess that 95% of renters here look for student houses or are professionals seeking one or two bedroom flats.

I looked at quite a few rental properties when our house was last under offer (mid-December, we got gazundered mid-Jan). I was mainly looking at properties around £2500 (there was VERY little on the market for less than £2000 a month then): at least three of the properties I saw (at £2500) are still available (and still priced at £2500pcm) 10 weeks on. I looked at another property for £2750pcm and that is now available for £2250pcm. Unfortunately none of those 4 properties really did it for me (which I think would be good at that price). Oddly enough the property I REALLY loved was priced at £1800pcm (so the cheapest by quite a bit), unfortunately that was let last week :rolleyes: (probably because firstly it was lovely and secondly it was very reasonably priced (it actually started on the market in August at £2500pcm)).

It would suggest that there MAY be room to negotiate (assuming the LL is motivated). Certainly all of the properties I viewed in December were vacant at the time.

QT