Investment Blog – Rising Rent
There are a great many positives that we can take out of the current climate of subdued lending; low interest rates, low tenant turnover, low levels of tenant problems, and even rising rents due to rising demand for rental properties.
The unaffordability of housing coupled with the huge deposits that first time buyers are required to have is having the effect of forcing people that normally would have bought to rent. As long as you picked the right areas you will now be experiencing rent increases.
Of course I am not stupid enough to believe that everyone is experiencing this right now and certainly in some areas the opposite is true.
The problem with most agents…
The problem with most agents is that they aren't so worried about the rent that you receive. A £25 increase for them means they will receive 10% extra or £2.50 each month. Worst still is that the actual agent who is dealing with that will probably get 10%-20% of that £2.50 so to them it's 25-50 pence and in a lot of cases thats a one up commission. Not really something that inspires them to put the rent up for you.
About 6 months ago I suggested that where possible Gladfish Lettings puts the rent up by £25 or £50. The girls have been successful in this and increasing more are seeing the changes.
The places to stay away from are those that have a high proportion of public service employees. These areas may struggle depending on the cuts announced in October.
If your tenant is due to move out soon then why not give our team a call on +44 (0)207 923 6100 and they can give you a quick assessment of where your rent should be. If you aren't using them then feel free to give them a call and have all your properties managed under one roof with one point of contact by someone who will raise the rent. At whatever chance they get.
Live with passion,