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Pricing your Buy to Let
Want to know what price your property can and should let for, but don’t quite know where to start? That’s our area of expertise. We do it every day. Here are five frequently asked questions on pricing your property for market, answered for landlords who sought our advice. See if any of these answer your questions too.
Q: What should I consider when pricing my rental property? There are various factors to consider when pricing your property to let. First, think about the property itself. How many bedrooms does it have – not only this, but what size? Single or double? These are important variables which impact the average rental values. Seasonality also impacts your rental value. For example, summer months will see a change in the rental values. The local market dynamics will have an impact too – having an agent with good knowledge of the local market is invaluable. Local knowledge will help understand patterns in labour and industry in the area, as well as simple things like nearby schools or amenities which affect your property’s value. Timescales are also an important consideration. If you are in the process of doing work on the property, or you don’t need a quick let, you may have time to try a slightly higher asking price to test the market. Many landlords also think about their own financial commitments, such as mortgage payments, maintenance and emergency funds, when determining their asking price. If you need to be achieving a certain price to make it a worthwhile investment or to cover mortgage payments then it is essential to do your market research before purchasing, or consult with an expert who can advise if letting the property in question will cover these expenditures and make it a worthwhile and viable investment.
Q: Why are current market values important and how can I find out what they are? Very useful information can be gleaned from various sources regarding current and previous rental prices. It is important to take this information into account so that you achieve acceptable return.. For example, if two bed flats typically let for £550 in your area then yours will have to have something special to achieve £650. Research the market. Keep an eye on rental prices before you buy too. You can use a number of sources – propertynews, propertypal and a number of other property portals and journals can be helful, as well as speaking to an expert at a company such as Belvoir, who will have local and specific knowledge.
Q: How will I know if I've pitched my property at the wrong price? If you’ve gone too low, you’ll know about it! You will be inundated with requests. If you price yourself out of the market, you’ll get very few viewing requests. Both of these are easy mistakes to make and equally damaging – either you will lose money that you could be earning, or you’ll lose out on months of rent until you adjust your price. If a perfectly presented and marketed property isn’t attracting tenant interest then it’s probably incorrectly priced. That’s another reason why you need the input of a professional – they do the marketing for you, which is another pro.
Q: What are the benefits of asking the advice of a letting agent? For the reasons discussed- it’s invaluable to get the input of a professional in the field in all walks of life- no less in letting your property. There’s a wealth of knowledge and tools you have in your armory, however the local market expertise of an agent within a trusted nationwide branch network like Belvoir is invaluable. Put simply - your local letting agent is the best person to value your property because they have local experience and will know what has previously let - and at what price - in your road or area. To give you the most accurate valuation possible they will also take many things into consideration, such as tenant demand, quality of decoration, quality of furnishings and the time of the year.
Q: How can a letting agent help me maximise the financial return on my property? Good independent unbiased advice from a specialist will go a long way to ensuring your investment delivers the max. Prior to marketing, they will give you impartial advice on decoration / furnishing / repairs, which can have a knock on effect on the rent you achieve. Agents have an eye for the details people may miss, through years in the business. For example, noticing small things such as a change in a lampshade, or the quality of your photography, can make a huge difference to renters.
- Property size and type
- Recent market activity in the area
- Local transport or amenities, such as schools
- Effective marketing techniques
- Market trends and seasonality
For more information, please call: 02892679020
Email us at: Lisburn@Belvoir.co.uk