Five Factors To Consider When Setting Rent In Southampton

Setting the correct rental price for your property is essential to attract the best tenants and maximise the return on your investment.

Too high, and you won’t get that all-important awareness and interest.

Too low, and you’ll be out of pocket.

Here are five key considerations every landlord should keep in mind when setting the rent for their rental property.

Market research: Before setting your rent, make sure you understand the local rental market in your area. Look at similar properties in terms of size, location and amenities to gauge an appropriate price range. Search online property portals and consult with local letting agents for a comprehensive view of the rental landscape. We can help you understand this.

Property condition: The state of your property significantly influences how much rent you can charge. A well-maintained property with modern fixtures and high-quality fittings can command higher rent. Regular updates, such as fresh paint, new appliances and maintained gardens, enhance appeal and justify a premium price point.

Local amenities and connectivity: Proximity to key amenities such as public transport links, supermarkets, schools, hospitals and leisure facilities can allow you to set a higher rent. Properties that offer convenience are highly sought after, and emphasising these features in your rental advertisements can attract more interest. Again, we can help with this.

Economic conditions: Be aware of the broader economic environment, including employment rates, the general cost of living and average income levels in your area. Economic downturns or job scarcity can affect people’s ability to afford higher rents, so adjusting expectations in response to economic shifts may be necessary to keep your property occupied.

Legal requirements and tax implications: It’s important that you understand the legal landscape. Ensure compliance with national and local laws (many councils have landlord licensing schemes) to avoid legal issues. Additionally, consider the tax implications of your rental income and seek advice from a financial adviser to understand your responsibilities and optimise your tax position.

Remember, overpricing can lead to prolonged vacancies, while underpricing might affect profitability.

Working with an experienced letting agent can take much of the stress and strain from your shoulders as they’ll know the ideal price bracket for your property’s monthly rent.

Contact me today to learn more about how I can help you.

Why Guppies Make Good Tenants And How You Can Attract Them

If you’re wondering what Guppies are (and we’re not talking about fish here) and what they’ve got to do with the property sector, let us explain.

The term ‘Guppies’ refers to tenants in the 18 – 39 age bracket who see themselves staying in the rental market for the long term.

The nickname comes from the phrase ‘Given Up on Property’ because Guppies don’t see home ownership on the cards for them for at least the next decade.

For some, this is because of the high cost of buying a property and the struggle to get a decent deposit together.

But for others, it’s about lifestyle. Some Guppies don’t want to be tied to a 40-year mortgage and the other demands of home ownership, such as repairs and maintenance.

Others in this group would rather rent in an area they love than move further afield to a more affordable (but perhaps less desirable) location.

So, How Big Is Generation Guppie? 

Zoopla estimates that 42% of Brits under 40 who don’t own a property have no plans to do so for at least ten years – hence they’re Guppies.

The property platform also notes that 40% of Guppies earn more than £60,000 annually.

Do Guppies Make Good Tenants?

We wouldn’t be doing our job as letting agents if we didn’t state that all landlords should follow a rigorous tenant selection process (with relevant credit and reference checks).

But given that many Guppies are on good incomes and looking to rent for the long term, they could make ideal tenants.

So, What Do Guppies Want?

High-standard properties – Guppies seek a place to call home, not stop-gap accommodation. It’s important to them that a property is well-maintained and has a modern interior.

Responsive landlord – Young people (and from our point of view, anyone under 40 falls into this bracket) are tech-savvy and prefer to communicate through channels such as WhatsApp. When they raise an issue, they don’t expect to be waiting days for a response.

Pet-friendly homes – While many in Generation Guppie may not have children, they may want a pet or already be a doting pet owner. Flexibility around the issue of pet ownership will be seen as a real plus.

Upkeep – As we said earlier, for some Guppies, the lure of renting is not having to worry about the cost or stress of repairs and maintenance. This doesn’t mean they don’t care about these things, but they expect the landlord to be diligent and proactive.

If you need help managing a rental property and sourcing good-quality tenants, contact our team at Belvoir Southampton today.