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Thursday, 19 June 2014

Why a property can stick and not let

I have a landlord who owns a property on Portland which is ‘sticking’ and quite rightly she is getting rather concerned.  We have discussed this at great length, have reduced the price twice and persuaded her not to go to a different agent!

The property is well presented however, in an attractive location and has character features.  However it does have certain disadvantages and it is these of course why it is not letting.

Despite being only 50 metres from the beach, unfortunately it has no garden, on street parking 30 metres away and a downstairs bathroom which all serve to limit its appeal somewhat.

This led me to thinking what makes a good buy to let and it is often not what makes a property a good buy to make your home. Tenants often have different criteria they are looking for.  Once you have calculated the potential yield a let property will give up you need to look at the area and the facilities the house will need to offer a potential tenant.  Generally a house needs a garden and easy parking.  Character features probably don’t feature too highly in future tenant’s plans!

A flat probably won’t need a garden but it might be an advantage if it is close to a good bus route.  A smart flat will at the least allocated parking.

Schools are important if your target tenant is a family and maybe the proximity of the doctors’ clinic.  
Every town has a ‘nice, desirable area’ and a ‘not so desirable’ area.  What is an undesirable area to you is fine to some folk who even desire to live there because ‘their mum lives over the road’ or their ‘sister lives next door’.  These are real life examples of why tenants have taken particular houses that have other real disadvantages.

It’s all about putting yourself into the head of a potential tenant and seeing your property from their point of view.  What you see as excellent features are not always what a tenant might see and what you see as potential downsides could be positive advantages to them.

With regard to my Portland house it is definiantly in the category of a ‘niche property’. Portland is either where you must be or where you couldn't possibly live.  There seems no middle ground. One thing I am sure of is trhat there is a tenant out there somewhere and it will let.  Two viewings tomorrow……… 

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