Cannot find tenant 1 Bedroom flat ex-council Islington £1350 pcm

[shlomo]

 

Wendy Liu

1h  · 

 

Good evening.

I have my first Rental on the market for just over one month.

Not exactly having much feedback from the agent but not sure what’s the usual info they will give?

He has suggested to lower the rent expectation. Looking at other properties in the area mine is definitely not over priced. Is one month the right period to start dropping price? Not entirely sure is it because Covid so the market is slow... Thanks ahead for the advice.

 

https://www.rightmove.co.uk/properties/78039180#/media?id=media2&ref=photoCollage

 

 

UK LANDLORDS FORUM & LATEST NEWS ::    FACEBOOK

[Megadebt]

3 hours ago, shlomo said:

 

Wendy Liu

1h  · 

 

Good evening.

I haveon the market for just over one month.

Not exactly having much feedback from the agent but not sure what’s the usual info they will give?

He has suggested to lower the rent expectation. Looking at other properties in the area mine is definitely not over priced. Is one month the right period to start dropping price? Not entirely sure is it because Covid so the market is slow... Thanks ahead for the advice.

 

https://www.rightmove.co.uk/properties/78039180#/media?id=media2&ref=photoCollage

 

 

UK LANDLORDS FORUM & LATEST NEWS ::    FACEBOOK

"Not entirely sure is it because Covid so the market is slow..." 

 "rent expectations" 

 "Wendy Lui"

 

 Reading between the lines, could the penny be starting to drop for a recent and not too savvy foreign BTL investor?

[Si1]

She sounds like she needs an enormous clock.

[shlomo]

8 hours ago, Megadebt said:

"Not entirely sure is it because Covid so the market is slow..." 

 "rent expectations" 

 "Wendy Lui"

 

 Reading between the lines, could the penny be starting to drop for a recent and not too savvy foreign BTL investor?

I read a wide range of ideas, and what seems to be coming out is the large number of new landlords who have no idea, they are paying more than a property is worth and expect it to work out as a long term investment, they will get burned BTL has changed significantly since the pandemic, flats are very difficult to let or even sell

 

[highcontrast]

'I've lost £26k': landlord crisis hits breaking point one year on from the eviction ban'

Rents in Shoreditch have fallen 30pc in 12 months, according to one agent 

https://www.telegraph.co.uk/property/buy-to-let/lost-26k-landlord-crisis-hits-breaking-pointone-year-eviction/

[Save me from the madness!]

I'm wondering if the eviction ban is actually helping some Landlords in a bizarre way. Sure if luck is against you and its your tenants who isn't paying that bad, but for the other Landlords it means no forced price rediscovery for a rental making it easier to keep their tenants on existing high rent levels. If people had been evicted there would have been loads of new rentals coming to the market at a moment of great financial uncertainty and few people moving... Surely that could only have resulted in a rental price crash? 

[highcontrast]

2 minutes ago, Save me from the madness! said:

Surely that could only have resulted in a rental price crash? 

You mean like this?

"Rents in Shoreditch have fallen 30pc in 12 months, according to one agent"

[jiltedjen]

Thing with flats, is that there will be owners of whole blocks. 

these are the market makers when it comes to rent. They will have close to full occupancy, as they can aggressively follow the rental market with its ebbs and flows to avoid costly voids.

for individual investors the market could draw out pretty quickly and all your calculations and potential yields are blown to bits, it’s pretty telling that they are not just dropping rents to meet market demand especially that even just one month is a fairly large cost on its own. 
 

And you get a critical mass of individual investors you could find asking prices for rents are high in an area, but of all those individual investors who are asking ‘the market rate’ there will big a big block owner, who leaves a single flat on the market at high rates, then quietly lets all the rest at a ‘bargain’ price (real market level) 

by holding one flat on the market at greed rates it does 2 things, one it makes the housing seem very investable as the potential yields seem high (they are not) and it keeps your own block occupied.

the poor morons who pay high prices for flats, based on a quick google of rents, ends up with an overpriced very underperforming asset.

and of course you get the odd poor ******* renter who ends up occasionally paying too whack rent also. 

Edited March 21, 2021 by jiltedjen

[MonsieurCopperCrutch]

16 minutes ago, Save me from the madness! said:

I'm wondering if the eviction ban is actually helping some Landlords in a bizarre way. Sure if luck is against you and its your tenants who isn't paying that bad, but for the other Landlords it means no forced price rediscovery for a rental making it easier to keep their tenants on existing high rent levels. If people had been evicted there would have been loads of new rentals coming to the market at a moment of great financial uncertainty and few people moving... Surely that could only have resulted in a rental price crash? 

But for every eviction it creates a free property and a free tenant so why do you say there would be few people moving? 

[Save me from the madness!]

35 minutes ago, MonsieurCopperCrutch said:

But for every eviction it creates a free property and a free tenant so why do you say there would be few people moving? 

During COVID I was meaning, only the most pressing of reasons would have caused a home move in those early stages. I'm wondering if without the suspending of evictions rental prices would have plummetted as a few tenants evicted and very limited potential new ones around. Maybe this situation will still happen when the props are removed? 

[Save me from the madness!]

35 minutes ago, MonsieurCopperCrutch said:

But for every eviction it creates a free property and a free tenant so why do you say there would be few people moving? 

During COVID I was meaning, only the most pressing of reasons would have caused a home move in those early stages. I'm wondering if without the suspending of evictions rental prices would have plummetted as a few tenants evicted and very limited potential new ones around. Maybe this situation will still happen when the props are removed? 

[Save me from the madness!]

47 minutes ago, MonsieurCopperCrutch said:

But for every eviction it creates a free property and a free tenant so why do you say there would be few people moving? 

During COVID I was meaning, only the most pressing of reasons would have caused a home move in those early stages. I'm wondering if without the suspending of evictions rental prices would have plummetted as a few tenants evicted and very limited potential new ones around. Maybe this situation will still happen when the props are removed? 

[Si1]

16 hours ago, shlomo said:

. Looking at other properties in the area mine is definitely not over priced. 

You have to wonder sometimes.

[MattW]

This landord should ask the local authority to manage the flat and find a tenant to live there. She will get an income in no time. Maybe not £1,350 a month though.

[MARTINX9]

To quote Mr Justin Timberlake.

'Cry me a river'!

Maybe many will think there is more to life than spending £1,350 a month to rent a crummy ex council flat in Islington - particularly when you realise almost all of your neighbours are living there for free or if they are paying barely a quarter of what you are.

[shlomo]

6 hours ago, highcontrast said:

'I've lost £26k': landlord crisis hits breaking point one year on from the eviction ban'

Rents in Shoreditch have fallen 30pc in 12 months, according to one agent 

https://www.telegraph.co.uk/property/buy-to-let/lost-26k-landlord-crisis-hits-breaking-pointone-year-eviction/

Allison Smith, 54, lives in Kent. In 2018, she and her husband purchased a two-bedroom buy-to-let. In June 2019, their tenant stopped paying. Mrs Smith, who spoke using an assumed name, had a court date set for March 2020. Then came lockdown and successive eviction bans. The tenant has accrued 21 months’ of rental arrears, totalling £26,000.

The problem tenant meant the Smiths were unable to remortgage, so they have since been moved on to a standard variable rate. They are also now paying extra to cover two mortgage payment deferrals.

As a result, their monthly costs jumped from £500 to £1,150. “There is no way I will ever be a landlord again,” said Mrs Smith. They are selling up.

[rb391]

32 minutes ago, shlomo said:

Allison Smith, 54, lives in Kent. In 2018, she and her husband purchased a two-bedroom buy-to-let. In June 2019, their tenant stopped paying. Mrs Smith, who spoke using an assumed name, had a court date set for March 2020. Then came lockdown and successive eviction bans. The tenant has accrued 21 months’ of rental arrears, totalling £26,000.

The problem tenant meant the Smiths were unable to remortgage, so they have since been moved on to a standard variable rate. They are also now paying extra to cover two mortgage payment deferrals.

As a result, their monthly costs jumped from £500 to £1,150. “There is no way I will ever be a landlord again,” said Mrs Smith. They are selling up.

My heart bleeds for them 😆

 

surprised there wasn’t the usual ‘but this is my pension’ ********. 

[dances with sheeple]

1 hour ago, shlomo said:

Allison Smith, 54, lives in Kent. In 2018, she and her husband purchased a two-bedroom buy-to-let. In June 2019, their tenant stopped paying. Mrs Smith, who spoke using an assumed name, had a court date set for March 2020. Then came lockdown and successive eviction bans. The tenant has accrued 21 months’ of rental arrears, totalling £26,000.

The problem tenant meant the Smiths were unable to remortgage, so they have since been moved on to a standard variable rate. They are also now paying extra to cover two mortgage payment deferrals.

As a result, their monthly costs jumped from £500 to £1,150. “There is no way I will ever be a landlord again,” said Mrs Smith. They are selling up.

They hope.

[shlomo]

1 minute ago, dances with sheeple said:

They hope.

It is a flat so they will probably lose money on it. 

[Si1]

19 hours ago, rb391 said:

My heart bleeds for them 😆

 

surprised there wasn’t the usual ‘but this is my pension’ ********. 

I love the way they say "I don't have enough capital to give me a decent pension" - answer - get a BTL. Because of course property is a magic asset.

[Flopsy]

19 hours ago, dances with sheeple said:

They hope.

I am seeing more and more properties being advertised with a tenant and for 'Landlords only'. These are not the ones going 'under offer funnily enough.

[hotblack42]

2 hours ago, Flopsy said:

I am seeing more and more properties being advertised with a tenant and for 'Landlords only'. These are not the ones going 'under offer funnily enough.

Never mind buying with tenants in situ. I wouldn't even like a flat in the same block as tenants who could but don't pay.  Not likely to be polite & thoughtful neighbours are they?

[Former postman]

3 hours ago, Si1 said:

I love the way they say "I don't have enough capital to give me a decent pension" - answer - get a BTL. Because of course property is a magic asset.

I really wonder sometimes, have these people considered, perhaps, working for a living and saving into  pension? 

[Megadebt]

On 21/03/2021 at 09:33, jiltedjen said:

Thing with flats, is that there will be owners of whole blocks. 

these are the market makers when it comes to rent. They will have close to full occupancy, as they can aggressively follow the rental market with its ebbs and flows to avoid costly voids.

for individual investors the market could draw out pretty quickly and all your calculations and potential yields are blown to bits, it’s pretty telling that they are not just dropping rents to meet market demand especially that even just one month is a fairly large cost on its own. 
 

And you get a critical mass of individual investors you could find asking prices for rents are high in an area, but of all those individual investors who are asking ‘the market rate’ there will big a big block owner, who leaves a single flat on the market at high rates, then quietly lets all the rest at a ‘bargain’ price (real market level) 

by holding one flat on the market at greed rates it does 2 things, one it makes the housing seem very investable as the potential yields seem high (they are not) and it keeps your own block occupied.

the poor morons who pay high prices for flats, based on a quick google of rents, ends up with an overpriced very underperforming asset.

and of course you get the odd poor ******* renter who ends up occasionally paying too whack rent also. 

...And the inexperienced first time investors can fret about their empty voids on mumsnet, whilst being self-assured that they are indeed asking the correct 'market rate'...clever. 

 

41 minutes ago, hotblack42 said:

Never mind buying with tenants in situ. I wouldn't even like a flat in the same block as tenants who could but don't pay.  Not likely to be polite & thoughtful neighbours are they?

 Never found London transport workers, retail staff or hospital cleaners to be particularly uncouth.

 You do realise that many housing benefit claimants in London are working full time right?  

[hotblack42]

6 minutes ago, Megadebt said:

54 minutes ago, hotblack42 said:

Never mind buying with tenants in situ. I wouldn't even like a flat in the same block as tenants who could but don't pay.  Not likely to be polite & thoughtful neighbours are they?

 Never found London transport workers, retail staff or hospital cleaners to be particularly uncouth.

I think we are at cross purposes.  I meant people who are ripping off their landlord, possibly because they know they won't need a landlord reference or need to rely on a credit rating for the foreseeable.