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London Rental Demand… What Does This Mean To Me?

August 27, 2011 By Leave a Comment

I know this post may seem a little off topic, but we can always have an idea of how the market is progressing, if we keep an eye on our capital.

Although the rental, and indeed sales market can seem overly inflated. Some of the numbers floated around seem simply crazy, but demand for rentals in the prime London property market have surged. This week a record £55,000 per week rental was agreed. We must look behind this grandiose statement, and examine what this could mean if we have apartments in Liverpool to rent.

According to Harrods Estates, the luxury real estate arm of the Harrods Group. They reported a surge in demand for luxury rental properties in 2011.

‘The prime property market in London is the fastest growing area in the UK. We have not only seen an increase in demand from buyers but also those looking to rent which in turn is pushing prices up. We recently secured a rental of £55,000 per week, which is a record figure for us,’ said Shirley Humphrey, sales and marketing director of Harrods Estates.

From March 2011 to date, Harrods Estates achieved rentals at an average let price of £4,285, compared with average rentals of £1,955 in the same time period of the year before.

‘Some 89% of our sales are from high net worth individuals from overseas, particularly Russia, Middle East and Asia, where we achieve our highest sales. The short supply of property and high demand from international buyers is unlikely to slow, indicating prices to buy and rent will be even higher by the end of 2011,’ she explained.

‘Rental prices have almost doubled in the last 12 months. We have seen the highest rent prices in Knightsbridge, an average of £4,900, proving the area remains the most popular location for wealthy individuals from overseas,’ she added.

The last paragraph is key to finding the salient information from this exercise ‘rental prices have almost doubled’. This isn’t just a reflection on the affluent London boroughs, but a basic nod to supply and demand economics.

If you’re interested in property management Liverpool or anywhere for that matter. Mortgages are still difficult to obtain and the governments recent fall short on its affordable housing for all initiative, is a key benefit if you have a property to rent. Indeed the governments commitment to build more housing in general hasn’t really happened during this period of economic instability. If you do wish to rent out a property, seek good advice to maximise its rental potential as you have a high demand product.

Our best advice is seek a professional property management company to maximise rents and to do the hard work for you.

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Filed Under: Setting the right rent, Study the Market Tagged With: , ,

Could They Be Bad Tenants

August 19, 2011 By Leave a Comment

More information now on how to differentiate between potentially strong and weak clients. This is places you in a luxury position when you have a house to let in Liverpool. Anyone with any property management experience will quickly tell you ‘get this wrong and it can cause you no end of trouble’

Imagine late payments, damage and complaints from your neighbours

Consider credit checks

You may consider running a credit check on your prospective tenant. This is particularly helpful in identifying previous bad debts, and its uses are therefore twofold: a credit check can help you judge whether or not the tenant is likely to pay the rent (or, more accurately whether they have a history of non-payment); and it can help you judge whether or not the tenant has existing disputes that might, in the worst cases, cause bailiffs to come knocking at your property.

Trust your instincts

The importance of trusting your instincts really cannot be overstated. If the tenant’s references are fine but you are still unsure about the individual, you should listen to your gut feeling. Remember that you are not obliged to let your property to anyone. If you would be uncomfortable doing business with them, then keep looking.

Always take a deposit

It is remarkable how many landlords fail to take a security deposit from their tenants. This is one of the most important ways in which you can protect yourself and your property, and you should not hand over the keys to your property until you receive it. The size of the deposit you request will depend on the nature of the property, but most landlords ask for the equivalent of either one month’s or six weeks’ rent. Remember that the deposit needs to be protected in a government-mandated deposit protection scheme.

Alternatively, if you have flats for rent in Liverpool then you really can’t go wrong with a property management company to take all that responsibility out of your hands

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Filed Under: Checking on tenants, Deposits Tagged With: ,

Basic Supply And Demand

August 15, 2011 By Leave a Comment

Those in the know will say if you have a property to rent in Liverpool, you’re onto a winner. The Liverpool rental market is continuing to rise. Mortgage availability is still poor! Many more individuals are being forced to rent – and this situation looks set to continue for some time.

It’s basic supply and demand economics. As demand increases, so too does competition between tenants. This means that landlords are frequently placed in an apparently enviable position in which they are able to choose between several potential options.

While choice is always good, it can be difficult to differentiate. So what should you be looking for, and how can you help to make sure you choose the right tenant?

Check references

References are amongst the most useful tools available to you in the hunt for reliable tenants. The references you request will depend on the nature of your property. But residential landlords would be wise to request at least a verifiable reference from the prospective tenant’s previous landlord. Remember, though, that these are easily faked, so you should always follow up the reference – for example by phoning.

You may also choose to ask for an employer’s reference, but you should remember that this is not a guarantee of the tenant’s ability to pay their rent. Similarly, some landlords ask for an affordability reference from the prospective tenant’s bank. The bank will tell you whether or not, in their view, the tenant is good for the money – but again, you should not use this as your sole indicator.

To take all the hassle out of this time consuming and often futile task, you can use a property management company. It’s a great way to get the type of client and take the stress out of finding the right tenant. If you have a property to let Liverpool we’d recommend Bluerow Lettings

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Filed Under: Checking on tenants, Pick tenants with care Tagged With: , ,