How can tenants prevent a rent increase in the future and keep their landlord happy?
- 24th October 2016
- Renting Property News
A win - win long-term lettings give tenants the stability needed to plan for the future and produce higher net returns for landlords
In many ways a longer term letting of a property can be a win/win situation for both tenants and landlords. For ludlowthompson landlords the average lettings term now stands at over two years – 26 months.
From the tenant’s point of view there is more stability and the ability to plan for the future in the knowledge that the rent is not going to be suddenly increased at short notice. Longer term lets also mean that any administrative fees, such as the drafting of new contacts, are kept to a minimum.
From the landlord’s perspective, they have a longer-term security of income, without the need to regularly seek new tenants and the additional letting fees that would entail. In addition, longer term lets should mean overall that they have fewer void periods – a real concern for any landlord.
ludlowthompson's own research shows that longer lettings often mean higher net yields for landlords when compared to a revolving one year let on the same property.
Occasional periods of uncertainty, such as that caused by the Brexit vote, increase the attractions of longer term lets and there has been a noticeable trend towards these in recent months.
Alexander Rawlinson, Managing Director at ludlowthompson, comments: “There is a lot to be said for longer term lets, especially when the negotiations for the UK’s exit from the European Union begin, which may create a climate of uncertainty.
“Tenants can better plan their finances if they know their rent will remain at a constant level for a certain period, and they can plan their social life. With key infrastructure projects being developed throughout Lodnon, tenants will guarantee access to employment markets and local retail destinations.
“For Landlords, the London lettings market has held up tremendously well and rental levels remain really robust.”
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