Most weeks one of my blog readers will call me to talk about the Watford Property market and ask me about how much they should be receiving in rent for their existing rental property in Watford.
I took a call last week from a local property investor who is doing all manner of exciting things in Watford including HMO’s, title splits, commercial to residential and of course he owns a number of properties that are rented on a single let basis.
He asked me firstly what was going on in the local rental market as rents seemed higher than they were a year ago and then about a particular property he owned and whether he should be getting more rent for it.
He was renting his 2 bed 2 bath flat on Franklin Avenue for £1,000 per month which was the going rate not much more than 12 months ago. But due to the lack of supply and the popularity of this type of unit it’s more likely to achieve £1,150 per calendar month in today’s market.
Watford Property Market
So why have rental prices in Watford increased to so much?
There are 51,415 properties in the main Watford postcodes. 22% of those properties or 11,364 are privately rented. In the last 30 days 217 rental properties were listed on Rightmove which is only 1.9% of all of the rental properties in Watford.
There certainly is a shortage of rental properties coming onto the market and there is a strong demand for them. This is a typical supply and demand problem and bearing the above in mind it’s no wonder prices have increased.
This landlord will potentially lose his tenant if he increases their rent by 15% and it’s never great to lose a tenant if they are regular payers and looking after your property well but most landlords do get into property to make a profit so he has a number of options.
1. Keep the tenant in place at the same level of rent.
2. Increase the rent giving the tenant the correct notice. This may turn into a negotiation or could result in the loss of a good tenant.
3. Lose the tenant and re-market the property at the correct level of rent.
In Watford voids are short and as you’ve already seen there is a high demand for rental property so the landlord could go with any of the above.
There are plenty of landlords out there who are very nice and feel guilty about increasing rent and bringing it in line with the local market. If you are one of these and you would like a bit of help with your situation or if you’d simply like to discuss whether you are getting the correct level of rent then why not come and talk to us and we’ll help you out.