1). I believe the agent letting my house is over valuing it. I've compared my property to other similar houses on the market and they all are significantly cheaper. Should I change agent?
It is important to keep a dialogue with your agent who will be able to tell you why your property is not letting. It could be related to your property, or it could be the lack of demand for properties at this level, as a result of the current economic climate and therefore, the price should be adjusted. The rental market is changing on a daily basis and certainly some larger properties have come down in price over the last few months. Apart from price there are other factors to take into account. For example: it may need redecorating/refurbishing, the furniture may be letting it down, or even the lack of furniture may be the problem, or the lack of fitted cupboards. (In one case I came across was the feed back from every applicant was that the bathroom needed upgrading and in this case the property let quickly once the bathroom was refurbished.) Perhaps the property is too individual and may need to be more neutral. You may have spent a lot of money on a beautiful hand painted Chinese dining room wall and dark maroon reception room which looks lovely in the evenings, but neutral, light coloured painted walls and modern kitchen and bathrooms are more likely to attract a potential tenant. Your agent may be giving you advice that you do not want to hear, but remember that they should have experience with other properties similar to yours and should know what is important to Tenants. If you feel that your agent is not giving you the correct advice, or you require a second opinion, I would recommend that you discuss this with another agent and then decide if you wish to bring them in as well or switch agents completely.
2) I have had the same tenant in my property for over 5 years now. I have never really raised the rent as they are very reliable tenants and good people. Now my agent is urging me to charge more, and that I'm not getting a good deal for my investment. What should I do?
Having a long term excellent tenant is very important, however, there comes a time when you need to look at the investment and decide if you should increase its potential. After 5 years, redecoration and perhaps other works need to be done. It may be that it is time to upgrade some of the fittings, for example put in new kitchen appliances, or upgrade the bathrooms, or lighting or even just replace the carpets. All this will attract potential tenants at a higher rent level. It is also important to factor in the time that the property will remain un-let including remarketing time to ensure you can cover any mortgage or outgoings during this period. I would also speak to your tenants directly and explain the situation. They will be aware of what is happening in the market place and may be prepared to pay more rent rather than find somewhere else (inevitably at a higher price) as well as the costs of relocating. You could include some upgrading whilst they are there or on holiday as part of the terms. This should benefit you both – your rent is increased without a void period and from their point of view you have invested in their home. I would suggest that you discuss this with your agent first so as to agree on the best strategy.
3) My property is being advertised by two reputable agents, but nobody has taken it up. Should I instruct more agents?
Don’t instruct more agents as this can have a negative effect on the marketing of your property. Ask your agents whether they think there is anything you can do. Does it need redecorating, new carpets or a stand-up shower, for instance? Does it need part furnishing or do you need to un-furnish it? Flexibility will widen your market. Your agents can give you details of comparable properties for rent. This will help you determine whether the price is too high. If it is, reduce it and be prepared to accept a six-month break clause. Check how your agents are marketing the property. It should be on the main property search websites such as Primelocation or Rightmove and advertised in at least one publication.
4) I have never allowed my tenants to keep animals, but I think I’m losing out because of it. Should I revoke the clause?
An animal does not necessarily mean that your property will be ruined. I have come across situations where children have caused more damage than animals. Firstly, if you don’t own the flat, find out whether your head lease allows animals. Some will, but require clauses added to the tenancy agreement. I would also include extra clauses in the contract relating to any damage to the property or disturbance to your neighbours. Make sure you have a full inventory including photographs at the beginning and end of the tenancy.
