11/10/2022
Whilst this maybe a controversial subject to some, given the current climate of the world due to rising inflation. We recently conducted a portfolio review for one of our landlords, who had covid rents from the last 18-24 months. We quickly realised his portfolio was over £6000 - £8,000 below market rents annually.
Here's the sticky part, you have great tenants who are frequently paying rent. However since December 2021, the BoE has increased interest rates several
times, from an initial starting point of 0.1%.
As a company we acted as an intermediary between the landlord and tenants to issue both parties were getting the best advice/ deal for themselves. Using accurate data based on comparable evidence, we offered the tenants a chance to propose a rent they feel comfortable paying and thankfully the landlord accepted all of the tenants proposals. Whilst the increases may also seem high, they're still slightly below the current market rate.
It's worth mentioning not all landlords are penny pinchers and often some of the fantastic landlords we work with, often make no income some months when you factor in tax, maintenance and other legal costs. Landlords also have been hit hard recently, with longer void periods, covid rent reductions, electrical safety legalisation requirements, longer eviction process, tax changes and increased interest rates. If this is you, do you want to find out how to best maximise your rental income?
Soon there will be further changes to the UK property sector, will we see further landlords leaving the sector and selling up, as it's no longer financial viable to keep their asset?
Disclaimer the rents negotiated are still slightly below market rate.