If you’re a landlord in Torbay or Teignbridge, it’s only natural to want the best possible return on your investment. After all, property isn’t just a building; it’s your future, your pension, or perhaps your primary source of income.
There’s a common school of thought that goes something like this: "If I set the rent £100 or £200 higher than the market average, I’ll attract a 'better' class of tenant. Someone who can afford the extra cash must be more responsible, right?"
It sounds logical on the surface, but in reality, it’s one of the most damaging myths in the world of property management. In fact, taking this approach can often lead to the exact opposite of what you’re trying to achieve.
We see this play out time and again. Today, we’re going to bust this myth wide open and explain why a realistic, market-aligned price is actually your golden ticket to a high-quality, long-term tenancy.
The "Savvy Tenant" Factor
First, let’s talk about who "the best" tenants actually are. Usually, when landlords say they want a better tenant, they mean someone who pays on time, looks after the house like it’s their own, and stays for a long time.
These high-quality tenants have one thing in common: they are savvy.
A tenant with a great credit score, a solid career, and a history of being responsible is almost always someone who manages their finances well. Because they are good with money, they know exactly what a property is worth. They spend their evenings online looking at properties, and they know the difference between a fairly priced home in Newton Abbot and an overpriced one in Torquay.
When a top-tier tenant sees an inflated price tag, they don’t think, "Oh, this must be a premium experience." They think, "That landlord is unrealistic/greedy, and I’m going to be overpaying every single month."
The result? They simply ignore the listing. By overpricing, you aren't filtering for wealth; you’re filtering for people who don't understand the market: and that’s rarely the trait of a "model tenant."
The Math of the Void: Why "More" is Often "Less"
Let’s look at the numbers. As a letting agent in South Devon, we always advise our clients to look at the annual yield, not just the monthly headline figure.
Imagine you have a lovely three-bed house in Paignton. The market rent is £1,400 per month. You decide to hold out for £1,550 because you want that "premium" tenant.
- Scenario A (Market Price): You list at £1,400. You get 15 enquiries in the first 48 hours. You pick the absolute best candidate, and they move in within two weeks. Total annual income: £16,800.
- Scenario B (Inflated Price): You list at £1,550. The savvy tenants ignore it. It sits on the market for six weeks. You eventually find someone who is desperate enough to pay the premium (more on that later). Total annual income (minus 1.5 months of void): £16,275.
In Scenario B, you’ve actually lost over £500 in the first year alone, despite the higher monthly rent. And that doesn't even account for the ongoing costs of a vacant property: council tax, utilities, and insurance often still need to be paid while the house stands empty.
The Risk of the "Desperate" Tenant
This is perhaps the most dangerous part of overpricing. When a property sits empty for too long because the price is too high, the landlord starts to get nervous. The mortgage still needs paying, and the "For Rent" sign is starting to look a bit lonely.
When you’re in that position of "void period panic," you’re far more likely to lower your standards.
Who applies for an overpriced property that everyone else has ignored? Often, it’s tenants who have been rejected elsewhere: perhaps due to poor references or underlying issues: and are willing to pay a premium just to get a roof over their heads.
By setting the price too high, you inadvertently attract "high-risk" tenants you were trying to avoid, while the reliable, value-conscious tenants have already moved into your competitor's fairly priced property down the road.
The Local Context: Torbay and Teignbridge in 2026
The rental market across Torbay and Teignbridge has seen significant changes recently. While demand remains high, we are seeing a "softening" of the aggressive rent hikes we saw a couple of years ago. People are hitting their financial limits.
In areas like Torquay, Brixham, Paignton, and Newton Abbot, tenants are looking for stability. With the cost of living remaining a primary concern, a tenant who feels they are paying a fair price is much more likely to stay for three, four, or five years.
High tenant turnover is the silent killer of rental profits. Every time a tenant leaves, you face:
- New marketing costs.
- Potential void periods.
- Wear and tear from moving furniture in and out.
- The cost of professional cleaning and minor repairs.
If you set a realistic price, you aren't just getting a wider audience; you’re buying loyalty and stability.
Why Professional Property Management Matters
We often get asked, "how much do letting agents charge?" and while the fees vary depending on whether you want a simple tenant-find service or fully managed lettings, the real question is: what is the cost of getting it wrong?
A good letting agent doesn't just put a sign in the ground. We provide:
- Accurate Valuations: Using real-time data to find the "sweet spot" that maximizes rent while minimising void periods.
- Rigorous Screening: Ensuring that even with a "wide audience" of applicants, only the most reliable ones make the shortlist.
- Market Strategy: Knowing exactly when to launch a property to get the most eyes on it.
Whether you need property management in Teignbridge or help navigating the latest rental legislation, having a professional partner ensures you don't fall into the common traps that cost landlords thousands every year.
Summary: The Realistic Approach Wins
Setting a higher rental price doesn't get you a better tenant; it usually gets you a longer void period and a more frustrated experience.
The most successful landlords in the South West are those who:
- Value stability over a headline figure.
- Respect the intelligence of the modern tenant.
- Understand that a property is only worth what someone is willing to pay for it TODAY.
If you’re looking for a realistic valuation of your property or want to discuss how our fully managed lettings can take the stress out of your investment, we’re here to help. At Butterworth Lettings, we’re locals who know the market inside out. We don’t just tell you what you want to hear: we tell you what will get your property let to a great tenant, quickly.
Ready to find your next great tenant? Get in touch with us today for a no-obligation chat about your property.