The 6 Rs to make letting a success
- 1st December 2020
- Landlord Property News
The R-rating of the rental market – rethinking your letting strategy
With the UK lettings market becoming increasingly competitive, and prospective renters having very different requirements compared with before the pandemic, now more than ever landlords need to quickly re-think their letting strategy. To do this, landlords should focus on the 6 Rs:
Review – Landlords should undertake a thorough review of their property portfolio to make sure they are investing in locations that are experiencing growth despite the COVID-19 pandemic. For example, London residential property continues to outperform other major asset classes, with London property prices up 3.48% year-on-year.
Re-pricing – Residential rents have decreased by 6.05% over the last year due to increased stock from Airbnb properties coming onto the lettings market. As a result, landlords should reassess the rents they charge to make sure they reflect current market rates.
Repurpose properties – Renters’ requirements have radically changed since the pandemic hit. Over 50% of people in a recent industry survey* indicated that they would like to work from home more in the future. Landlords should start to rethink the layout of their properties to accommodate home workers. Converting extra bedrooms to a home office could make a property more attractive to prospective tenants.
Refinance – Lenders across the UK are now offering attractive mortgage rates for long term investors. Landlords should explore these offers as the funds can be used to refurbish properties or purchase buy-to-let properties in up-and-coming locations to add to their portfolios.
Reappraise – As the economic uncertainty due to COVID-19 continues, landlords should reassess their cashflow to make sure they not caught out. Yields on long term lets are higher compared with short term lets, so landlords should renew their focus on long term tenants to keep the cash flow steady over the next year.
Reward – Landlords have been rewarded for their resilience by working with tenants. Rental deferments stood at just 5% during lockdown, and as London opens up and the capital's economy responds, rent arrears are set to decrease once again as they did for properties managed by us. Arrears decreased from 2.44% in Q2 2020 to 1.70% in Q3 2020.
Stephen Ludlow, Chairman at ludlowthompson says: “Now is an ideal time for landlords to rethink their letting strategy.”
“Features such as home offices and outdoor space have become increasingly desirable to tenants. Landlords should consider investing in improvements to their properties that will make them more marketable in today’s climate.”
“Landlords should be reassured by the strong performance of residential property which continues to comfortably outperform other asset classes.”
Our team of expert Sales and Lettings agents continue to be on hand to show you properties virtually and in-person viewings can also be arranged that comply with strict social distancing rules.
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Michelle X via Google reviews:
“As a landlord I am very pleased with the team for the letting process. Specifically, I am impressed with the following:
1. Correct rental pricing and access to quality tenants for the area.
2. Clarity, friendliness and responsiveness in communication.
3. A generally helpful and "can do" attitude. Willingness to listen.
I enjoyed working with the team and would recommend them to other landlords in the area.”
Jaz S via Google reviews:
“I have been extremely impressed with the letting manager and his team which has been faultless. Under his management the team have been professional throughout the engagement. They have been supportive and provided excellent guidance and assistance and showed they cared about my concerns by tailoring the service that has met my expectations at every step.”
Now more than ever landlords need to quickly re-think their letting strategy. To do this, landlords should focus on the 6 Rs
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