Renting Dilemma

Halliron

Hey,

I've been trying to rent out my old home. We put it on the market at £400, which was in context of recent deals done on the neighbourhood (sadly well below what we'd have got 1-2 years ago, but what can you do).

It was on the market for over two months with a very worrying lack of offers, when last week an offer came in at £325! We're obviously worried about the cash drain of not shifting the place at all, but that seemed too much of a discount, so we said no, unless they came back at £350.

We heard nothing more until this week, when a different estate agent called and said he'd just had a great viewing, She loved the place, and they particularly wanted the place as they wanted to get their daughter into a very well regarded school. The house is well withing the catchment area of the school. (.25 miles away). She was looking in the £400.

So.. good news, but yesterday the first EA called to say that the first offer had raised to £350, then chased today saying that they're ready to put down a deposit, want to move in on Wednesday! 2nd potential tenant wants to bring hubby to view the place, can't view until Monday.

What should I do? Bite at the £350, try and stall, or put all eggs in the 2nd tenant basket?

£50 a week adds up to a lot of money, but I don't want to end up with nothing at all...

Any thoughts?

Geenie

The first thing is you haven't said if the tenants offering £350 have been referenced and credit checked by the agents yet? I assume they have if wanting to move in on wednesday. If they haven't been though, it is essential that this is done, despite your desperation to let the property.

RainMaker_2

Halliron wrote: »

What should I do? Bite at the £350, try and stall, or put all eggs in the 2nd tenant basket?

Tell the 1st Tenants the truth, namely that you have another viewing, and will respond to their increased offer soon as.

If you try to ride 2 horses you normally fall off !

Geenie

I would normally agree with this, but the 1st tenant wants to move in on wednesday, so the OP hasn't much time to think about things!!

OP, have you any idea when the 2nd would want to move in, as I assume they would not be ready for at least another month, so you could have at least 1 months void whilst waiting for them?!!! You need to find this out before doing anything.

If you add up the rent for the next 6 months, from April to September, with the £350 a month, you will earn £2100.

If you go for the £400 a month, including at least one month void for the same period, you will earn £2000.

pawpurrs

Good points Gennie, but I read it that the rental price quoted was per week?

pawpurrs

Well its friday night now, cant you get the Letting Agent to say she cant contact you untill monday as you are away for the weekend, perfectly feasible and buys you a little time untill Monday, and then you need to make it clear on Monday that if they are interested you need a decision that day, as you have someone else that has expressed an interest.
Make sure you take in to account who will stay for lonfer, void periods etc...

Geenie

pawpurrs wrote: »

Good points Gennie, but I read it that the rental price quoted was per week?

I've just seen the £50 per week, but it makes no difference if the 2nd lot can't move for a month or more, as the void will cancel out any potential extra profit for some months whilst the place is empty.

The most important thing really is the quality of tenant and are they long term if this is what the OP wants, so as to avoid future voids. If the 2nd are previous homeowners and waiting to buy, then they could give notice in 6 months time, whereas the 1st could be long term letters. You have to factor all of this in sometimes, and not be blinded by a short gain, that could be wiped out if the need to readvertise and have the property empty for another 2 months occurs.

It's not easy for sure.

Halliron

Thanks for the replies guys.

As an update, I took the risk of asking to delay until today, however the 2nd tenant hasn't been responsive, so I've just called and accepted the first offer. [3 house sharing professionals, credit checks out ok, in fact the 2nd estae agent even said he also had them on his books, and that they'd be good tenants]

I was thrown a bit, however, when the 1st estate agent then offered to do it himself, rather than through his company. It would be a cost saving (5% rather than 10%) - but it seems very dodgy to me. Would I be putting myself at legal risk if I went along with this? How would his company feel about that?

Am I just being silly, or is this a big red flag?

tbs624

If you must use a letting agent then make sure that the agent is ARLA registered. If this Agent is prepared to make random deals behind his company's back then he hardly sounds like he will be up for Trustworthy LA of the Year award does he? Where would he have the T pay rent into- his personal bank a/c? How would he deal with the tenancy deposit? Nope, either self-manage the let or talk him down to 7% but stay "above board"