Expert: Do not overcharge for rent

Posted: 20 Oct 2011 10:48:53 GMT

People should not be greedy when it comes to rental terms.

Landlords need to make sure they do not charge too much for rent.

This is according to Ed Mead, director at Douglas & Gordon - which was established in 1958 - who added "rental is the new sales".

The demand for properties to let is linked to the fact many cannot afford to buy at the moment, typically because they are unable to get a mortgage.

"Rental really is where the growth and the action is and sales appear to be on a slight downward trend," Mr Mead stated.

He added it is much better to agree a small hike in leasing terms than try and be greedy, as a one-month void if a property sits dormant is equivalent to an eight per cent drop in rent over the course of a year.

Research by the Department for Communities and Local Government found in 2010 that 78 per cent of landlords owned only one dwelling, while eight per cent treated it as a full-time occupation.
 

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