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  • Buy-to-Let

    Discounting 1st month's rent - ARLA object!

    Hello,

    Are you allowed to discount the 1st months rent? i.e. when a property is vacant we sometimes ask the agent to knock at least a hundred from the first months rent.

    ARLA has apparently given them a call and asked them not to advertise at the 1st months rent but subsequent rent.

    Is this right? Puts me off using an agent!

    e.g. £395 first months rent then £495 thereafter.

    Obviously deposit will be calculated on the lower £395.

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    I would imagine it is to do with correctly giving a description of the property and the rent on it.  Advertisements have to be accurate by law.

    Why not market it at the full price, but ask that, in the text, the agent puts something saying "Special offer:  £100.00 discount on first month's rent" and/or offer a Zero Deposit option to attract more potential tenants, if that is the aim of your price drop for the first month?



    We also have this video which has lettings agents explaining the benefits and how they have been using it to reduce voids:


    *Transparency notice: Zero Deposit is a commercial partner of Property Tribes

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    It is your property so of course you can discount the first month’s rent.  It is not like the retail market place where you have RRP (Recommended Retail Prices).  

    I suspect what ARLA are getting at though is that the agent is advertising the property at £395/month when in fact it is £495/month, with £100 off the first month, which is misleading.  

    As an aside why don’t you keep the rent at full price and offer £100 off the deposit.  Still saves tenants £100 cash upfront built you eventually get more rent?
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    Anthony Davies

    http://www.CosyDragons.co.uk

    http://www.360Property.co (No UK)

    Follow me on twitter / Facebook / Insta - @CosyDragons