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The location of your property is essential
A popular TV show drove home the importance of location in the property market and it is just as true in the rental market. “Location, location, location” should be a mantra for landlords because this is a huge factor for tenants. When tenants look for suitable property, one of the first criteria they will select is location.
Of course, there are many different factors that combine to make a good location, including:
- Being in a safe area
- Being located close to work or further education for the tenant
- Having suitable transport options close at hand
- Being able to enjoy bars, clubs, shops and restaurants
- Having good quality schools in the local area
If you are renting to students, close proximity to college or university and bars is going to be more important than schools and a safe area. Conversely, if you want to let to young families, the catchment area and crime figures may be the key factors that convince a family to let from you.
Any landlord looking to let property should think about what sort of tenant they want to appeal to and then look for property in a location that appeals to these potential tenants.
It probably goes without saying that price and budget are key factors for tenants when looking at property. Again, if you have a particular style of tenant in mind, you need to know what sort of budget they have at their disposal and then work towards providing them with an affordable solution.
You will want to make a tenant feel as though they are getting good value for money when they rent from you, you obviously still want to make a profit. If you don’t make a profit, you won’t stay in business but if you make too much of a profit, you may find tenants drift away from you quickly.
It can be difficult to know how to price your rental accommodation and you need to balance your own needs, the expectations of tenants and the general prices in the market. If you are going to charge a rental fee that is above the local average, you need to make sure that you can justify the increase. Many tenants are happy to pay more if there is value for money on offer but what one person determines to be value for money may be different from someone else.
Additional factors that made a difference
Given that the rental market is highly competitive, it may be that a small advantage will make a big difference. If you want to appeal to tenants, offer them something that they cannot find elsewhere because some of these factors are going to be what tenants are looking for. Examples of factors that tenants may desire include:
- Parking spaces
- Natural light in the home
- A garden area
- Exterior storage such as a shed
- Sufficient storage space inside the home
- Good quality white goods
- A nicely presented bathroom or kitchen
Knowing what your tenants want from you and a property can help you to be the number one choice for your ideal style of tenant. If you want to know more about the local market and find out what people are looking for, get in touch with me.
I’m Amalia and love nothing more than to talk about property, planning, staging and solving tenancy issues.
Have a lovely day.
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If you are looking to invest in the Newport rental market, or you already have a stake in this area, it is only natural that you will want to know more about what is likely to happen in the New Year. In recent times, there has been a lot of doom and gloom about property prices and how they are falling, but this is largely down to the fact that the media is fixated with the London property market. Yes, the English capital is experiencing a slowdown with property and rental prices but this isn’t the case around the whole of the UK.
Newport has a lot to offer
Areas like Newport are actually performing quite well, and there is an expectation that property prices and rental fees will rise in 2018. If you are looking to invest in property, this can be seen as bad and good news but if you already have property, knowing that rental fees are tipped to rise could be seen as a positive sign. Of course, while a growth in prices is expected, it may be that the growth is slow. There is a feeling that a ceiling may have been reached, or is close at hand, when it comes to rental fees. If the point is reached when tenants cannot afford to pay any more in rent, landlords may not be able to increase their prices in the manner they would hope.
According to Zoopla, as of December 2017, the average price paid for property in Newport as of the previous twelve months stands at £161,673. According to the home.co.uk website, the average rental fee for property in Newport stands at £577 per calendar month (pcm).
Know what rent you can expect for your Newport property
This average rental fee can obviously be broken down across a range of property types. For a one bedroom property, the average rent stands at £467 pcm while for a two bedroom property, the average rent is listed as £568 pcm. With a three bedroom property, the average rental fee stands at £673 pcm while for a four and five bedroom property, the average rent is classed as £922 and £1,175 pcm respectively.
If you can make a good return with these figures as your starting point, you should find that 2018 is okay for you as a landlord. This is because the rental fees should increase from this point but then again, depending on what type of mortgage a landlord holds, their monthly mortgage payments may rise too.
There is still a lot of negativity in the air with respect to the property and rental market in 2018 and with the type of external influences impacting on these markets, you can see why. Any landlord looking for assistance in 2018 should contact Homelink Lettings and we will do what we can to help you out.
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When it comes to the local property market, there is a lot to be said for knowing the most recent prices. Even if you are not looking to buy a home in the near future, property prices can be an indicator of what is happening in the local area while giving you a clue as to what is likely to happen in the near future.
There are many reasons why you would enjoy life in Newport, located in South East Wales. At around 12 miles from Cardiff, Newport is handily located to this major destination but it shouldn’t be overlooked that as of the 2011 census, Newport was the third largest city in the entire country. With the city boasting of a population of over 145,000 people and the urban population standing at more than 306,000 people, it is fair to say that Newport has a lot going for it.
Know how much property is selling for in Newport
As of October 2017, the average value of property in Newport stands at £169,276 while the average price paid for Newport in the past 12 months is £163,227. In the past six months, the average price paid for Newport property stands at £158,520 and the average price paid for property in Newport in the past three months stands at £157,564. All of these figures are according to the most recent Zoopla statistics.
While some people may have concerns about the drop in price paid when looking at the last six month and three month figures, it is important to be aware of the risks at looking at small sample sizes. Over a period of three or six months, one or two outliers can cause the average property price to be skewed away from its norm, so this isn’t always a true reflection of the market or an indicator as to what will happen with the property market in the future.
Newport compares well with many parts of Wales
As a comparison point, the average value of property in Wales, as of October 2017, stands at £184,041 while the average price paid for Welsh property in the past 12 months stands at £172,167.
Some of the average prices paid in leading Welsh areas in the past 12 months can be seen as follows:
- Blaenau Gwent £95,440
- Caerphilly £141,602
- Cardiff £221,352
- Carmarthenshire £150,041
- Flintshire £169,552
- Merthyr Tydfil £119,089
- Monmouthshire £256,005
- Swansea £163,129
- Wrexham £168,203
While Newport is by no means the most affordable area in Wales, the average price paid is attractive compared to the average prices in Cardiff, particularly when the two areas are situated so close to each other.
Another issue that is important to many people is the rental fee in an area and in Newport, the average property rents stands at £608 per calendar month (PCM). A one bedroom property has an average rental PCM of £459 and a two bedroom property provides an average rental PCM of £566. For a three bedroom, four bedroom and five bedroom property, the average property rents per calendar month stand at £639, £1,047 and £1,160 respectively.
With Newport having so much to offer, there are many reasons why you would like to set up home here, but it is vital that you know about the local property market and the prices associated with the area. If you would like to know more about the Newport property and lettings market, get in touch with Homelink Lettings.