Rental: cheeky potential tenants

[erloe]

I have a rental which was my home before I met dh. It’s a one bedroom flat in a very very sought after development. I listed it for £3,200 a month and got no interest. I reduced to £3,000 and got one viewing. They offered £2,700 a month.

I got another message asking if the kitchen appliances had been updated since the pictures because the washing machine looked 20 years old. I have now had new pictures taken.

Have other people had tenants haggle on price? I rented it for £2,700 in 2019.

£3,000/ month for a 1 bed flat.

It needs to be top notch. They are not being cheeky. £3,000/ month is a punchy rent to be paying.

3,000 for a one bed is the going rate in central

But it's not, is it, because no one seems to be prepared to pay it?!

Is that £3k based on prices advertised for other flats or actual rent being paid (figure maybe from letting agent)? Are the other flats more recent, higher spec, more convenient location?

Totally normal. I've had tenants ask me to paint over wallpaper and change the matching window treatments. I did it one time but refused the other as one was quite a bold statement the other was a classic neutral pattern.
The white goods are white goods and if they function no need to change them so ignore any of that. They take it as it is, though 'offering' lower rent is absolutely what happens. You said you haven't been able to rent it for more , so a bird in hand and all that!

Well if £2700 is the best and only offer you’ve had then that’s probably what the market rate is. Just because you think £3k is what you should get doesn’t mean people will pay it.

The going rate is whatever people will pay. If nobody wants to pay you £3k then it's not the going rate.

Gotta laugh at the delusion some people have.

Of course there are never ever any cheeky asking prices, only cheeky offers.

I doubt such people ever have the sense to check the competition in the local market? That is probably the real issue.

I have a colleague in London who is just brain dead. Rents spiked a year and a bit ago and were £2,100 for their exact same flat, yet this year there's been a deluge of new rentals and there are similar for £1,750.

Of course they think their flat is the best and it's still up for rent for £2k and them posting on Facebook every month 'looking for people to rent my lovely flat'.

I have suggested that the competition is their problem but there is no getting through to them. Because rents were £2.1k a while back, they seem to think £1,750 is derisory.

Insane price for a one bed, hopefully Labour will put an end to this racket.

Have you done anything to maintain it in the past 5 years? If not then you can’t expect the rental price to just rise automatically.

Very normal for potential tenants to haggle.

If you’re in a “very very sought after development” and you’ve only had one viewing, after a reduction, and even they are querying to state of appliances then either your photos/listing is dire or you’re massively over pricing a flat that needs updating to atttact high rent.

How long has it been empty OP? Because if you wanted £3200 and it's been empty for 3 months then honestly accepting £2700 is better because then (assuming that more than covers your costs) it is occupied and your asset is generating income. If it's empty then it's negative returns because you have costs.
As an illustration: If you keep waiting and then rent out for only 6 months of the year at 3000 you lose money compared to renting out now so for 10 months of the year at 2700.

No, they aren't cheeky to try to negotiate.
Your initial asking price, and even the subsequent one was cheeky though if you have only had one viewing and one offer below advertised price.
From what I hear, there is a lot more supply currently as landlords have pushed rents to levels that people simply can't afford. Rents need to reduce so that normal, working people can afford to live.

How long has it been on the market? If you’ve had no viewings over the course of months I’d accept £2.7k. Leaving the flat empty for another couple of months would lose you more money than accepting a £300 decrease. Perhaps the condition of the flat was better in 2019

There isn’t one going rate for all of the 1 bed flats in central london. There’s so much more to it than that! What area it’s actually in, proximity to tube, total size of the flat, the decor, outside space, facilities of the building etc. etc. And frankly if you only got one viewing at £3,000 and they offered £2,700 then yours isn’t worth it. If it was then you would have rented it already.

But you only got 1 viewing, so there must be something not right about that price for your flat.

They're not being cheeky. They're being sensible. Quite cheeky of you to use old photos in the listing, though, if they're no longer representative of the flat.

A friend has a one bed flat near St Paul’s & he’s had trouble renting it for the price he expected post covid as less people need to live centrally (more wfh opportunities). However he negotiated significantly on the rent for his current tenant as it’s better to have it rented out than sitting there empty. His tenant is brilliant, very reliable & my friend hasn’t put the rent up when he could have as he values having a good tenant.
I agree that £3000 is a hell of a lot to charge in rent for a one bed. If you want it rented it out accept a lower offer & stop being greedy.

I pay less than half that amount for a three bed semi, a stones throw from the Cotswolds! Your flat must be amazing.

My son rents a nice 2 bed and 2 bath in Belsize Park for £2250- which he shares with a friend. Until 5 months ago it was £1875 . I appreciate that's not 'central' but for most people it will be 'central enough' and lovely area and a 2 bed 2 bath means it's easy to share- it's limited market at £3k for a 1 bedder and if it's foreign national they will usually want it absolutely mint Nick. I would take the offer OP- what the 'going rate' is is what someone will pay for it. My son initially got this flat (and it's a nice flat) for £1650 in lockdown because people were moving out- it was advertised at £1900

I realise it's not relevant but we pay that sort of money for a very pretty 4 bed stone semi plus big garden and drive in a lovely area of Bath that's featured in interior mags - and it's in mint condition in most areas.

In the nicest possible way you sound like an "amateur Landlord". You are surprised at the questions. perhaps it's your first time.
My advice would be to employ an Agent from the area. The legal requirements are more stringent than ever.
We have been letting for 20years, we have always used an Agent and we have never has a bad tenant. One has been with us for 5 years.
It is well worth the fees they earn.

If people aren't queuing up for your price it's too high.

"cheeky" FFS. Pack it in.

And sure I don't want to pay the best part of 3 grand for a 20 year old machine that probably uses too much water & electricity.

Good rental properties in London are like gold dust. If your flat was worth £3k in a month, you would have had several offers by now. I have a rental flat in East London and when it last went on the market (late 2022) the agent posted a “teaser” listing while I got a few things sorted. I got a call at lunchtime asking me if they could take it down as they had more enquiries than they could handle.

If you’re getting people trying to negotiate in such a hot rental market, you’re overpricing it. Did you or the agency set the asking price? Always remember that there are agents out there who will tell you that you can get more because they want you to list with them and not a competitor.

Rental prices do actually go down as well as up-that's how supply and demand works. And at that price point I'd assume that people who would be interested have plenty of options so can be picky.

I had a similar thing when I moved-I moved cities during the pandemic when there wasn't much to rent at all and prices were high, which I had to accept. Now there are a lot more properties in my area up for rent and my landlord has attempted to raise my rent again despite the fact that properties of the same size and in better condition than mine on my actual road are on for less than he wants. He won't listen to reason so I'm moving.

I have never been late with the rent and keep the house in good order but greed is greed.

Well, it isn't for your flat if no-one wants to rent it at that price.

You don't have to accept their offer if you think you can get more for it. They are not being cheeky at all.

How many months are you prepared to wait to get someone interested at £3000 a month? Each month it's empty you are losing £2700 if you say no to the interested party.