| One of the questions I get asked most is "How | | | | showhome. |
| do I rent my property quickly", to which there is | | | | Building wardrobes, beds and the like, putting dining |
| no straight forward simple answers, but rather a | | | | tables together, and hanging artwork is hard, time |
| combination of things that will all contribute to | | | | consuming work, and often, if you're anything like |
| getting your property rented out quickly. | | | | me, the job you do isn't as good as a job that |
| So, should you accept a reduced price, or hold out | | | | professional furniture installers can do. Think about |
| for the asking price ? | | | | how you'll be getting the mattress home, or how |
| An empty property can destroy your business | | | | long it takes to build everything, that's lost rental |
| when it comes to maintaining your cash flow on | | | | income. Not only that, but every day the |
| your property portfolio, especially if you only have | | | | property is not rented, that's rental money that's |
| a few rental properties. The cost of having to | | | | lost. Ive known landlords spend 6 weeks furnishing |
| pay for the mortgage each month the property | | | | a property, only to wait another 6 weeks to find |
| is empty soon starts to add up.A lot of landlords | | | | a tenant, a total of 3 months waiting ! |
| tend to hang out for the ideal price that they | | | | To what extent should you furnish? |
| think the property is worth, but often this can | | | | We've found that the more furnished a property |
| backfire on them. | | | | is, the more chance it has to be rented out. It |
| For example, we had a property on the market | | | | shows attention to detail, and it also adds to the |
| at £500, and an offer of £475 is | | | | "weight" and "depth" to the property. Fluffy |
| made by a potential tenant. The landlord has | | | | cushions, flowers in vases, twigs and artwork and |
| rejected this offer as they want to hold out for | | | | the like are also very useful in creating the right |
| the right price. In some circumstances, I can | | | | "ambience" and feel. All of this helps get the |
| understand this, especially if the property has | | | | property rented out. |
| already been brought down in price. But the | | | | "Fluffy cushions, lamps and artwork help finish the |
| property may only be worth £475 per | | | | look, especially in the main bedroom. |
| month for most tenants, perhaps £500 for | | | | Always make the bed, as tenants hate to see |
| a tenant willing to pay more, but waiting for that | | | | just a bare mattress, it makes the room look |
| right tenant to pay the full asking price can take a | | | | cold and uninviting. The main bedroom is an |
| while longer. | | | | important room, make it as nice as possible." |
| Assume we have a tenant who wants to pay | | | | Tax incentive ... |
| £475 per month, but the landlord is holding | | | | Always check with your accountant, but if you |
| out for £500 per month. The property is | | | | rent furnished you can claim 10% depreciation |
| left empty for a further month until rented they | | | | against the rent for wear and tear (UK Based, |
| get their desired £500 per month. | | | | elsewhere then double check). Again, always |
| But its not only a months rent he's lost, as he's | | | | double check with your accountant, but this can |
| also had to find the money to pay the mortgage | | | | help you make your property business a little |
| from his own pocket. Just to pay the £475 | | | | more profitable. |
| in lost rent would take 19 months to cover the | | | | Switch the lights on, open the internal doors ... |
| lost rent. (assuming no more voids of course). | | | | If you're doing the viewings yourself, try and get |
| Often, its simply better to take the price that the | | | | there a little earlier and switch all the lights on, |
| tenant is offering, especially if you can perhaps tie | | | | maybe open a window or two. Also, the |
| them into a 12 month contract as opposed to a 6 | | | | investment in some door stops is very |
| month contract. This means less voids, which is | | | | worthwhile. Open up all the internal doors, |
| what really kills a landlords business. | | | | especially on apartments, as often it looks |
| Often, Its better to accept slightly less for your | | | | confusing when all you can see are doors and you |
| property, than to lose another months rent while | | | | may end up going into the bedroom 2 first, rather |
| waiting, as to recoup that money will take a very | | | | than the lounge which is where most viewings |
| long time. | | | | should start. Show the best room first, then the |
| Listen to your previous tenants. | | | | rest, and leave a nice room to last. Bathrooms |
| If you have a high turn over of tenants. There's a | | | | can be a good end point to the viewing as this |
| reason for it. Sometimes, there's problems with | | | | can often be a room to help sell it, if presented |
| other tenants in the block, other times its | | | | property. |
| because the property has some problem, perhaps | | | | The other thing about opening the internal doors is |
| a bit of damp, or the boiler keeps breaking down | | | | simply that it lets in lots of natural light. I've seen |
| etc. Although repairs to these sort of problems | | | | the smallest flats look bigger with more natural |
| cost money, it costs a lot more money having to | | | | light. |
| find more tenants and have voids in between | | | | Be nice to your Letting Agent ! |
| tenancies. Pay the money, and get your | | | | Many landlords do not have a great relationship |
| properties back up to scratch. Its makes better | | | | with their letting agent. A lot of landlords see their |
| sense in the long run. | | | | letting agent as a barrier to getting their property |
| "Kerb Appeal -- the nicer on the outside, the nicer | | | | rented out. But most letting agents are eager to |
| on the inside, or that's how tenants will perceive | | | | get your property rented out as quickly as |
| your property" | | | | possible. They're also ideally placed to help you |
| The use of furniture to create a "lifestyle" that | | | | out, and their advice is invaluable. If you think |
| tenants can aspire to ... | | | | about how much varied experience they have |
| Some landlords think that you can get away with | | | | dealing with tenants, landlords, getting paid, etc |
| putting in sub standard furniture. | | | | and think about how many properties they see |
| But these days, tenants can be fussy about | | | | and the types of properties they see, they are a |
| where they stay due to the sheer number of | | | | wealth of information, but only if you deal with |
| rental properties available to them. Therefore, | | | | them correctly. |
| modern contemporary furniture can really help set | | | | The best way is not to bother them with why |
| that "lifestyle aspiration". There is also an issue | | | | your property isn't rented. A little bit of polite |
| with the standard of the furniture to ensure that | | | | leaning on them can and does help, but becoming |
| it complies with the fire regulations. Some | | | | a pain simply means that they wont want to deal |
| landlords even buy second hand furniture, | | | | with you. Let them do their job, rather than |
| however, this can often be a false economy. | | | | bombard them with phone calls. Its fine to get an |
| There are numerous furniture package companies | | | | update on the property, and on the market itself, |
| out there that can furnish the property for you, | | | | but calls in every other day just wont help your |
| but choosing the right one can be difficult. You | | | | relationship with them. |
| don't want to spent too much on your furniture, | | | | To be honest with you, any letting agent that has |
| but then you want to ensure that the furniture is | | | | time to call the landlords for a nice chat and an |
| suitable for the property. Spending over | | | | update every few days is doing something wrong. |
| £5,000 on a furniture package, will probably | | | | Many letting agents would prefer to return their |
| leave the property looking fantastic, but when the | | | | calls to potential tenants, and not to landlords. |
| tenant moves out after 6 months, it never looks | | | | While this may seem a little odd as, after all, it is |
| anywhere near as good once its been lived in! | | | | the landlord who has asked the agent to rent the |
| The other problem with spending too much | | | | property for them, it is perfectly logical. |
| money on furniture packages, are that if a tenant | | | | Whilst on the phone to the landlord, the letting |
| puts a cigarette burn into the £1,000 | | | | agent can not be on the phone to a potential |
| leather sofa, often the bond may not cover the | | | | tenant and this can be very frustrating, especially |
| damage, especially if they have damaged | | | | if the landlord is phoning for the 3rd time that |
| something else, pulled the towel rail off, smashed | | | | week asking for an update. Imagine if every |
| a vase, taken the towels and bedding, etc. A | | | | landlord were to phone up, then the letting agent |
| furniture package company can also build and | | | | would never get anything rented out, so let them |
| install all the furniture for you, making it very easy | | | | get on with their job ! |
| to do, and leaving the property looking like a | | | | Good luck on the getting the rent you deserve ! |