Some recently published statistics following a survey of tenants have highlighted several interesting facts which might be of interest to Birmingham landlords. The highlight being that whilst location was important the key in fact to a successful letting was price, with 77% choosing price above location 68%.
For existing Birmingham landlords watching the mass of tower cranes across the city building new apartment blocks, with the bulk of these off-plan sales going to investors, this price mark is one of the main ingredients for retaining current tenants or indeed attracting new tenants. The research highlighted that the length of the void between tenancies can readily be addressed through price when the property is placed to let despite the location.
For existing landlords and indeed those investors bringing their flats forward, & perhaps competing with other apartments within the same building, just one month of lost rent for a typical two-bedroom flat is worth a discount of £75per month on the years term. Any price greater than this being a bonus. As an agent having watched an individual landlord turn down a good tenant for just £25pm then seen the flat stay on the market for nine further weeks with the landlord incurring Council Tax & utility bills through this period, the additional cost is obvious.
Other statistics highlighted include that 23% of tenants want parking, 32% want to keep pets and 48% wanted a garden. All three making me think that this survey was conducted in the suburbs although here in the City the latter could be interpreted as demand for a terrace or balcony.
Birmingham is continuing to attract tenants and I have no fears that all these new blocks will fill up however please don’t believe all the sales talk regarding your initial promised rental yield if you have just bought because the price of your initial rent will secure the tenant more than the block!