Judging demand for rent in an area with no current rentals

by Readers Question

9:51 AM, 10th June 2015
About 4 years ago

Judging demand for rent in an area with no current rentals

Make Text Bigger
Judging demand for rent in an area with no current rentals

There is an area near me that I know is popular for people to live in – it’s a pleasant place, not too far from town, close to decent schools, low crime etc etc. However, there seems to be pretty much NOTHING available to rent there… and I’m trying to work out if that means it is a good or bad place to BTL. Judging demand for rent in an area with no current rentals

House prices there are slightly higher than other areas nearby, but not ridiculous, and there’s a few on the market that are in my budget. However, as I’m so new to the BTL game I’m just not sure if the fact that there’s currently no lettings on the market in this area means it would be landlord suicide to buy a house there for the sole purpose of letting it out.

I mentioned the lack of lettings in this area to an estate agent yesterday and they said “well that’s because they get snapped up so quickly” but I don’t know whether or not to believe that… I guess it just seems a little unlikely to me that in the time I’ve been looking at rentals on rightmove every night there hasn’t been a single property up for rent in this area when every other nearby (including more expensive and nicer areas) has several new rentals available almost daily.

So what would you guys do – would you write this area off as having no demand? or think of it as a good place to BTL because there’s no competition? If you would buy a property to rent there, how would you decide what price to rent it out at when there’s nothing else nearby to go on or compare to?

Also a related question, which I think I already know the answer to unfortunately – is there anywhere you can see previous rentals and prices in a specific area (like you can view previously sold house prices on rightmove and zoopla) ?

Thanks

Chris



Comments

Chris Townsend

8:54 AM, 11th June 2015
About 4 years ago

Reply to the comment left by "Mark Alexander" at "10/06/2015 - 15:55":

Oh ok, I just thought because they are an online letting agent then that meant no viewings and check in/out etc. Surely if they now have agents around the country then they're no longer an online only letting agent and their prices and services will start to become exactly the same as other non-online only letting agents? Their prices at the moment do seem to be a lot better than all of the local agents I've spoken to, but I guess I just have some reservations about using a company I've never heard of (other than recommendations from yourself: a shareholder in their company) and that have only recently started doing viewings and check ins themselves etc.

Ian Ringrose

8:56 AM, 11th June 2015
About 4 years ago

You make you money most from not having any voids, so letting to families can work well. But be careful about tenants that are moving to the area and have money, they may be looking to buy soon....

Chris Sheldon

15:17 PM, 11th June 2015
About 4 years ago

Reply to the comment left by "Chris Townsend" at "11/06/2015 - 08:54":

Hi Chris,

We've been doing viewings check ins, check outs, interim inspections etc.. from day one over three years ago.

We introduced the hybrid agency model and others are slowly catching onto the idea that you can reduce costs to landlords and retain the same profit margin as a high street agency and offer the same service.

If you wish to chat or wish us to provide a report for your property with no commitment then please do not hesitate to contact me.

Chris

1 2

Leave Comments

Please Log-In OR Become a member to reply to comments or subscribe to new comment notifications.

Forgotten your password?

OR

BECOME A MEMBER

Smart Meters - Beware and advice needed?

The Landlords Union

Become a Member, it's FREE

Our mission is to facilitate the sharing of best practice amongst UK landlords, tenants and letting agents

Learn More