At a time when tenants are looking for the lowest rents possible and landlords are seeking reliable renters, it is vital that London’s rental properties are marketed to the right tenants.
It’s no news that London rents are sky-high; tenants are struggling to find comfortable properties for prices that suit them, and landlords are being forced to invest in cities further out of the capital. But letting properties in London can work, believes landlord insurance expert Just Landlords.
All it takes is marketing your rental properties to the right tenants. That is, those that can afford them.
Taking your prospective tenants’ earnings into account, you will ensure that you target the right renters when putting your rental properties onto the lettings market.
If you own a property in Kensington and Chelsea, for example, which is the most expensive London borough to rent in, your typical tenant will need an annual salary of around £117,000 to afford your rent.
Contrastingly, the cheapest borough to rent in is Bexley, where single tenants can rent a one-bedroom flat on a salary of just £21,000.
When setting your rent prices and assessing the rental market in the area that you own a property, remember that there is a huge difference in the type of tenants that you should be targeting.
London’s rental properties, on average, will take an average salary of £40,000 to rent, according to the Rental Affordability Index 2017.
By salary, Just Landlords has analysed which tenants you should be marketing London’s rental properties to in each borough:
The Royal Borough of Kensington and Chelsea is the only location in the capital where tenants require an average salary of over £100,000 (£116,839) to rent alone.
In Southwark (£50,496), Wandsworth (£51,141), Islington (£52,190), Hammersmith & Fulham (£53,029), Camden (£63,468), the City of London (£71,685) and the City of Westminster (£88,468), the situation is not much better.
Hackney (£41,507), Haringey (£43,008) and Lambeth (£49,269) are marginally more affordable for single tenants.
Things start to get even cheaper in Enfield (£30,662), Ealing (£33,034), Kingston (£33,083), Brent (£33,712), Barnet (£34,971), Tower Hamlets (£35,019), Merton (£36,181) and Richmond (£37,908).
Behind the cheapest borough to rent alone in, Bexley at £21,463, are Havering (£22,399), Barking and Dagenham (£24,110), Croydon (£24,691), Bromley (£25,337), Hillingdon (£25,546), Redbridge (£25,692), Sutton (£25,950), Newham (£26,628), Greenwich (£26,660), Lewisham (£27,144), Harrow (£27,709), Hounslow (£28,193) and Waltham Forest (£28,564).
Understanding what private tenants can afford in the areas you own rental properties is the first step to securing reliable renters that will pay their rent on time and keep your property filled.
Start marketing London’s rental properties accordingly!