Research the rental market for the actual property

Tenant demand and demand from owner occupiers are different questions. A street you would not choose for your own home may suit tenants because of its transport links, employment access, schools, layout or price. Equally, a popular postcode does not make every property a sound rental investment.

Start with the proposed home: bedrooms, usable space, condition, heating, outside space, parking and access. Compare it with similar properties on the same streets or a genuinely comparable local area. A broad Liverpool average will not tell you whether the rent in your appraisal is achievable.

Collect evidence rather than the highest asking rent

• Record the date, address area, property type, condition and asking rent of each comparable.
• Track time on the market, reductions and repeat listings. A removed advert does not necessarily mean a tenancy was agreed.
• Ask a local letting agent what similar homes have actually achieved and how recently.
• Compare enquiry quality, attended viewings and suitable applications, rather than enquiry totals alone.
• Allow for a realistic void period, preparation costs and the possibility of a lower rent.

Have a written rental assessment before you set your maximum purchase price. Our property sourcing work in Liverpool connects local demand with the purchase appraisal.

What the 78-enquiry Kirkdale example tells us

In June 2021, Tuna Fish recorded 78 enquiries for a one bedroom flat in Kirkdale, in a block we managed. The original article used a system screenshot to demonstrate the response to that particular letting.

It is a useful historical example of why presentation and local demand deserve attention. It is not evidence that every enquiry became a viewing, that 78 applicants qualified, or that the same response should be expected today. The old inflation figures and market forecasts have not been carried into this guide.

Our 2022 account also described rent research and interest generated through a letting board. The lasting method is to examine the local evidence. It should be applied within today’s letting rules.

Set and advertise the rent within the current rules

For the English private rental market covered by the current rules, government guidance on rental bidding explains that a written advert must state a specific rent. A landlord or letting agent cannot ask for, encourage or accept a bid above the advertised rent.

Research the appropriate asking rent before marketing. Do not turn a strong enquiry response into a rental auction. Existing-tenancy rent changes are a separate process and should be checked against the applicable notice and legal requirements.

Presentation, safety and sustainable income

A clean, safe and well-maintained home is the starting point. Address necessary repairs and the relevant safety and licensing requirements. Attractive photographs cannot compensate for defects a viewer finds on arrival.

Consider affordability and the quality of the tenancy as well as the headline rent. A higher asking figure can be poor economics if it creates a longer void, repeated failed applications or an unsustainable tenancy. Our Liverpool property management team can discuss preparation, marketing and ongoing management.

Bring the evidence back to your buying decision

Use a realistic rent in the yield and cash-flow calculation, then test a lower rent and a longer void. If the purchase works only at the top of an optimistic range, reconsider your maximum offer.

These are practical questions to work through with a property mentor. The aim is a purchase supported by tenant demand and sustainable cash flow, with enough reserves to manage the property properly.

Continue your property education

Explore property auction courses, read Dominic’s property auctions book or listen to The Property Auctions Podcast. These resources complement the practical work of developing an investment brief with your property mentor.