Recommendations for landlords
Ensure your property is well presented, and is marketed to suitable applicants. Each property is competing with more than it would have this time last year (though less than previous years). Even some of the ‘strongest’ tenants are holding firm on their budgets, and so we would encourage you to be competitive with asking prices.
Whilst the lack of demand is driving rents up, the cost of living is supressing them, so finding the ‘sweet spot’ is somewhat of a science at the moment.
Even though there are various legislative and tax related changes impacting landlords, some of which are still to be confirmed, we continue to see landlords entering the market – albeit at a slower rate than past years – who are achieving yield levels on both long and short lets that we haven’t seen for many years.
It is useful to be aware that the coming changes with the Renters (Reform) Bill will are designed to quickly regain possession where a tenant is in breach of their agreement (including rent arrears and anti-social behaviour). It is also understood that you will continue to be able to sell, or move into your property if needed.
Advice for tenants
First and foremost, it is good news that there are more homes coming to the market, however I’d suggest an air of caution with how much comfort you take in this. Tenants who are securing the best properties right now are continuing to offer asking price or higher, meaning rents remain incredibly competitive.
The best thing you can do to secure a property is to prepare. Prepare your documents, your references, your finances, and importantly yourself to be ready to make a decision quickly when it comes to what you will compromise on and what your absolute ‘must haves’ are.
Currently, very few potential tenants will have the luxury of seeing multiple properties and considering them thoroughly before placing an offer. When pitching an offer, it is important that you put your best foot forward and offer strong, it’s unlikely you’ll be about revisit your offer.
And whilst we await further granular detail of the Renters (Reform) Bill, a key change includes the end of ‘no-fault evictions’ – in our experience, tenancies that are ended in this way represent a small minority.