Suite 411, Kingfisher Centre, Burnley Road, Rawtenstall, Lancashire, BB4 8EQ, United Kingdom
info@artfullodger-liverpool.co.uk
0845 123 55 34
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Artful Lodger Liverpool Ltd Suite 411, Kingfisher Centre, Burnley Road, Rawtenstall, Lancashire, BB4 8EQ, United Kingdom info@artfullodger-liverpool.co.uk 0845 123 55 34 |
Conducting a rent surveyThis is a great idea to learn more about what the current movement and activity is in your area regarding how rent levels are increasing, how long properties are staying on the market, which neighbourhoods and areas are renting the best, and what sort of features and selling points are attracting applicants.Be very clear about what your expectations are by carrying out a rent survey. Obviously you will be hoping to pinpoint where your rent level is pitched with reference to the wider market. It’s also crucial for amassing relevant information about the current status of rents in your area, turnover of property, which areas are most popular and how tenants are attracted to a property. The results will be that this information can facilitate successful rentals. In layman’s terms, this will help you get your property rented quicker and for the best price, giving you an optimum return for your investment. Carrying out a rent survey is easy, but can take time and effort. This could last a couple of weeks and may require resources such as newspapers, the Internet and a decent pair of shoes to see you through pavement pounding in your quest for enlightenment. Artful Lodger would recommend devising a spreadsheet to calculate the data you are going to record and ponder over. If you have a computer spreadsheet, this will be quick and easy. If you don’t have a computer, Artful Lodger would suggest you invest in an accountancy pad or customise plain paper with columns. You’ll need a column for each of the following: Full address Start with trawling the relevant sections of the classified ads in your local paper for the last month or so. Keep it relevant by checking only the rents relating to the area where your property is/will be. Buy a map of the city or town and mark off the areas and territories where you’ll be checking. Again, don’t go outside these boundaries otherwise the data collected will be skewed. It’s important to audit only those properties in areas that are comparable to your own. Equally significant is the idea that you’ll be surveying properties similar to your own. If you’ve got a flat, for example, you won’t compare that with a semi-detached house. Keep to the categories listed in your newspaper and reference source. Don’t deviate from the appropriate section. Now check through each of the advertisements comparable to your own property. It might restrict the search but where possible, check only those advertisements where an address is specified because otherwise you’ll need to do some phoning round to check details with the landlord or agency. You can then sort the entries by phone number; this is very important to avoid listing the same property twice and if you’ve got a lot of material to wade through (as in reams of back copies of papers and information leaflets, flyers, etc), it’s quite possible that the same property has several listings and you run the risk of duplications which will slow up the process. Although descriptions may differ, the phone number won’t and a pattern may emerge as to how the property has been marketed, advertised and whether the details such as rent levels have changed! It might be an idea to either cut out each of the ads and glue them to a card or write them out on the card. The reason for this is to make it easier to sort them. If you’re on the high tech route via spreadsheet on computer, create a column for the phone number, input all the data and then sort by the phone number column. Enlist the help of a local estate agent to get the square foot/metre figures – this sort of information is available to them if you’re having difficulty finding it yourself. Once all the figures are entered on the spreadsheet or on your manual card, average the rents for the one-bedroom, two-bedroom, etc. properties. You can also get a median figure (half above, half below). That accounts for high or low aberrations in rent amounts. A computer spreadsheet can do this sort of calculation for you instantly, if you tell it to. Manually, you will have to write each rent amount down in ascending order and see which amount is in the middle. Hardly rocket science but a very worthwhile exercise! Once you’ve established a figure, you can compare it with your own figure and check where your level is on the high side, too low or spot on. When you have all the information, pick up the phone. Call each landlord and ask the following questions: The next step is to visit your property either on foot or in the car, then visit the others on your list to see how they compare in terms of first impressions. Try to be as impartial as possible. It’s difficult to switch into objective mode but essential for this stage of the rental survey. Pay particular attention to: So by undertaking this exercise, you have figures and the sorts of information that you need to set the right level for your own property rental. It’s a very wise idea to repeat this sort of rental survey on a regular basis to get a real time and accurate idea of how the property movement fluctuates and how different areas, neighbourhoods and district come into favour or wane in popularity. It’s demographical wizardry. It will lead you to make informed decisions about pricing rental according to market forces and demands. Good luck. |
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