How the Cost of Living Crisis Will Affect the Rental Market?
In the last 6 months, the UK has seen a huge rise in the cost of living. This ranges from gas and electric, fuel, mortgage rates and even food.
Unfortunately, the rental market is not adverse to these rises and property managers are having to navigate compassionately through some difficult conversations with both landlords and tenants.
What difficulties are we facing?
We have found over half of the landlords want to increase the rents to match the increase in their mortgage rates. These conversations with landlords can be quite difficult as we also have to take into consideration that tenants are also paying out more each month, with other bills rising. Compromises must be made for tenants and landlords to try and reach a middle ground as for both parties, there increase or lack of increase can be the difference between being able to pay rent or potential default.
We are finding an increase in tenants who are in rent arrears, as they struggle to cover all of their bills and the rent. Having open discussions with your tenants and landlords to try and agree on payment plans will help both sides feel they are getting the support they need through a difficult financial period. Often when running financial analysis, it may be more cost effective for Landlords to reduce rent or offer discounts rather than a potential void period.
Just because we are in a cost-of-living crisis, does not mean everyday life stops — maintenance is still required and upkeep of properties to ensure good homes for tenants. However, with landlords also facing increased mortgage rates, and bills themselves, landlords being able to afford maintenance can be a challenge. Again, this is about advising the landlords on the best course of action, ensuring they do abide by the terms of the tenancy and their statutory obligations as landlords. We also advise you to regularly review your contractors charges to ensure they stay in line with what is expected for your area.
Condensation and Damp
At this time of year, condensation and damp are the achilleas heel for property managers, and, with the hike in energy prices, tenants are not heating their homes as often, which can cause condensation which leads to damp. As at any time with conversations with tenants regarding damp and condensation, managing their expectations and reminding them of their obligations as tenants is imperative to help alleviate these issues.
How can Rentancy help?
At Rentancy, we can help with all of these points by taking on your back-office support and helping with your property management and accounts. By outsourcing to Rentancy, we will navigate through the difficult conversations surrounding the cost-of-living crisis we find ourselves in and help maintain good relationships with both your landlords and your tenants.