At whatever level properties are rented there always exists a pool of tenants looking for a property.
They form a triangle with the majority initially looking for a bargain rental. This tenant triangle is shown below.
Tenants will pay 10-15% more per week when they find a suitable property
as the extra outlay is seen as only being short-term.
Within that triangle there are three rents. The dream rent that the landlord
would love to achieve, the market rent which represents normal value and the
bargain rent where tenants start to look because they are wanting to pay as
little as possible. What they will do is look at the cheaper rentals first.
If they find something that satisfies them they will rent it. If they cannot, they will raise their sights until they find something.
© 2003 Pilling Systems
