In the case of student accommodation, regular turnover of tenants is to be expected and, with such high demand from that demographic, welcomed. In most other cases, though, it’s best to try and keep turnover of tenants in your rental property to a minimum.
A landlord’s biggest nightmare is an empty property that is costing much more money than it makes. The fewer tenants you have, the less likely you are to have void periods – put simply, a void period is the time between tenants when a rental property is generating no rental income but the landlord still has to cover various costs, in particular mortgage repayments. Evading void periods will not only give you a regular and steady stream of rental income, it will also mean that you are more likely to have long-term tenants who will treat the place they live in as if it’s their own.
As estate agents working across the South of England, we know that reducing void periods relies on getting good, trustworthy tenants into your rental property from the very start. Once they are in place, it’s vital that you keep the property in tip-top condition and treat your tenants well. Satisfied tenants, after all, are much more likely to stay for the long-term; the ideal situation for any landlord.
First things first, you need to pinpoint the type of tenant you are looking for as they will all require something slightly different. Once you have worked this out, let your agent know and they will be able to target their search accordingly, only showing suitable would-be tenants around on viewings.
Keeping your property in ship-shape is a slightly easier but equally important step to undertake. Providing good quality furniture essentials such as beds, sofas, a cooker and fridge/freezer might sound like a lot of time, money and hassle, but if you think creatively you needn’t be left out of pocket. In addition, friends or relatives may be able to provide certain items at no extra cost. At the same time, it’s important that anything you put in your property is in good condition. Anything shabby, worn, tatty, broken or past its best will not give off the right impression to tenants.
A key way of keeping your tenants happy once they are in situ is regular communication. Tenants want to know they can pick up their phone to their landlord or letting agent at any time. Responding to enquiries, concerns and complaints in a prompt and efficient manner will make tenants feel like they are top priority. If they feel all their needs are being catered for, it stands to reason that they’ll be less likely to be casting their eyes elsewhere.
2015 looks set to be a good year for landlords, with more and more people in the UK turning to renting because of high house prices and the extra restrictions on mortgage lending introduced by theMortgage Market Review (MMR). With uncertainty surrounding the general election and a potential rise in interest rates, prospective buyers (particularly first-time buyers and young professionals) may think twice about buying and look to the private rented sector instead, mirroring what happens in many countries in mainland Europe.
A recent report by the Intermediary Mortgage Lenders Association (IMLA) stated that by 2032 over half of the homes in the UK will be rented. It also said that homeownership in Britain is increasingly becoming dominated by the older generations and that a return towards a 1970s-esque population of long-term tenants is likely. So, if you’re thinking about becoming a landlord now could be the perfect time.
ChimneyPots provide an instant online valuation tool to see how much your rental property could be worth in monthly rents. For further advice on letting your property, please contact us on: 0844 809 993.
