The property rental market has seen a dramatic rise in recent months. This is primarily due to a shortage of available properties, possibly because many landlords decided to sell their investments when the property market became buoyant after the pandemic. Because there are fewer properties in the private rented sector, it is a 'landlords' market', meaning more tenants are looking for a property than the properties available.
If we are in a landlord's market, why might your property stick? Surely you should have a queue of tenants falling over each other to apply for your property? These could be the reasons that you are struggling to rent out your property:
Priced too highly. Of course, when there is a shortage of something with high demand, we know that usually pushes up the item's value, and it is the case with property too. Landlords can advertise higher rent prices because there are hardly any properties available and lots of tenants that need homes. But this could price everyone out, leaving only the wealthier tenants to look at your property. In fact, this means that you have a reduced available market, and there isn't the same demand for your property. You may decide it's worth the wait and would rather let your property for more money, even if it takes longer, but this could be a terrible idea. One month without rental income can dramatically affect your overall profit for the year, so it's usually considered a better idea to find a tenant more quickly if you can. Also, you cannot select the best tenant for you and your property if you only have a limited group of potential tenants. This could mean that the only tenant willing to pay your higher rent could have adverse credit or other issues. You still might think it's worth the risk because you're getting higher rent each month, but this is definitely a personal preference. If a survey was carried out of all landlords, asking if they would rather have short-term high rent but a tenant with negative references or a great tenant with a slightly lower rent, most would choose the latter.
Not appealing to the target tenant. Your property needs to be tailored to the target audience, so consider who the property is most suited to and look at it through their eyes. If it's a property that will most likely appeal to a young family, is the decor and garden likely to suit them? If an apartment in a trendy building is most likely to appeal to a professional, does the interior match that, or is it dated?
Restrictions. 10 million households and 77% of families with children have a pet. If you don't allow pets in your property, you are putting off many potential tenants. In fact, the government have said landlords can no longer unreasonably refuse pets in the property because it affects so many tenants and can create problems for them in finding somewhere to live. Being more open to who can rent your property will increase the potential market and ensure that more tenants can consider making your property their home.
The rental market moves quickly, and tenants decide to apply for a property after just a short viewing appointment. So, if you are not finding a rush of tenants shortly after putting the property on the market, there could be a reason.
To understand how you can make your property appeal to tenants and make the most of your rental income, get in touch with our team of property experts.
