Saturday, October 18, 2008
My rents keep been chipped away. Each new tenancy seems to bring a reduction in the rental amount.
I have a two bed apartment in one of the few, nice suburbs of Nottingham.
This two bed apartment is in a victorian conversion and in a great location. ( not a city centre shoebox)
When I originally refurbished it 9-10 years ago I got a rental amount of £495. Yes at this time it was shiny and new and looked very smart, admittedly.
I had only payed about £40,000 for it so the yield was very healthy ( remember the days fellow landlords - ahhhh bliss - anyway back to the post ) .
The rental amount on this flat rose to £550 over the following years.
However in the past four years I have seen a gradual chipping away with each new tenancy to meet the market demand.
You see I'm a landlord who doesn't like an empty flat - you know "a tenant in the hand is worth more than two tenants in the bush ", sorry I'm blushing. Moving on!
As a landlord the word 'void' is like a dagger in the heart and to be avoided at all cost, a landlord could wait forever for the tenant that lays the golden egg. Unlike this lucky landlord.
So I always try to 'get them filled' as quickly as possible.
I've just received an email from the letting agent suggesting a reduction in advertised rent down to £475 to secure a tenant, as it has sat empty for the past few weeks.
This decline in rent has been caused by the over supply in new build apartments largely focused in the city centre, but the ripple effect seems to be spreading to the suburbs, and could soon be spreading to other property types and not just two and one bed apartments.
As recession hits house renters will be looking for a bargain to save cash and with all those cheap apartments to rent it could bring the whole rental market down.
Your darling Margo
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