We recently had some involvement in the letting of a house. The agent (a street-smart person well known to us) considered that the asking rent was fair, perhaps just a little on the light side but not overly so. It was rented out within days of being offered, with minimal advertising (basically internet-based and on the agent’s own hard copy list).
In the light of this experience, I wondered why a couple of properties not far from us have had “For lease” signs outside for a number of weeks. I googled the rents being asked and was quite amazed at the results. Sure, both properties might be considered reasonably “up-market”, but it seemed that the incremental rent being asked for each, compared with the property we had been associated with, was out-of-line with the incremental quality of the properties concerned.
To me, the irony is that, by asking for an “ambitious” rent, there is a big risk that the property will remain vacant for weeks – and it is likely that it will take many months or even years of the eventual higher rent (if in fact it is achieved) to offset a few weeks of no rent. And, although apartments may be in a different market to houses, there’s talk about a “supply glut” of inner city apartments.