‘RENTAL MARKET BOOMING’, ’RENTAL INCOMES AT AN ALL TIME HIGH’, ’RENTAL GOES MENTAL’
Reports such as these are to blame for an unfortunate rise in issues with inexperienced landlords. Landlords unused to the volatile nature of the housing market are reading these reports, and using them as reason to demand higher rents from long standing tenants. Evidence of what can happen after these demands is shown in the statistics. The percentage of stock from private landlords has fallen from over 80 per cent before 2009 to around 70 per cent. This is indicative of the reduced role of the buy-to-let investor in the market over the past couple of years.
Landlords without a great deal of experience can still invest in properly wisely and confidently, and help to avoid the danger of arrears. While the rental market is growing, making it a great time to invest, the way to ensure long standing, mutually beneficial relationships with tenants is to look at the bigger picture. While reduced supply creates higher demand in some areas, the tenants are still unlikely to be able to afford a substantially high rent. Rent reviews are part and parcel of the letting procedure, and tenants appreciate this, but it is still always better to ease up to a higher rent gradually. If a tenant chooses to vacate due to a rent rise, the cost of subsequent void period can be substantial. It’s always important to remember that the effects of the credit crunch are still being felt in almost every household, no matter what the press say.
