Rightmove recently did a survey with landlords to try and understand what landlords were thinking this year.
They asked 1,292 landlords to share their thoughts of what they were planning to do this year. 50% of landlords will be active in the property market in some form over the next 12 months.
Landlords plans for the next 12 months include, increase the number of rental properties and keep the same number of rental properties. These were the two highest items but there were 11% of landlords thinking of decreasing. 5% selling all up and 11% haven’t made any decisions.
One of the items that is most important to landlords is their current rent. 60% of properties are currently overdue a rent review. It was noted through the survey that landlords have not increased their rents over the past 12 months and in fact kept them the same. 36% have increased where a small amount have decreased.
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This is in complete contrast to the current market where rents have increase quite substantially. Unless the property is remarketed due to a tenant leaving often landlords don’t realise what their investment is worth. Also if they could increase the rent or not. Is it time to review your rent? Are you getting the best out of your investment? Why not look at the recent local market and see what is happening?
If your tenant is currently on a fixed term then you are unable to increase the rent until the fixed term ends. You can either send the tenant a new renewal at a higher rental figure. Alternatively agree a rent increase at the end of it with your tenant. You would need to record this as well as serving all the relevant documentation and you should either talk to your solicitor or speak to a letting agent.
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It was noted on the survey that 27% of landlords use multiple agents where over 70% only use one.
A lot of landlords still don’t understand what the compliance is when it comes to surveying notices. Landlords were asked how long they think it would take to evict a tenant from serving the notice to them leaving the property. Less than 8% said it was less than a month which would be incorrect but 62% said between 1-6 months. Obviously, it depends when the tenant leaves. Make sure you are up to date with your compliance.
One of the biggest concerns recently would be tax implications of being a landlord. Increasing compliance requirements for landlords. The upcoming changes to the EPC requirements for rental properties. Tenants deferring rental payments into arrears and current rental yields worsening.
The tax implications of being a landlord were the most concerning. The tax situation is forever change. We will be focusing on tax implications over the next few months. The second most concerning item was compliance. It is so critical that landlords understand what they have to do with their properties.
31% of landlords don’t currently use a letting agent which often means they are not with the current market by way of rental figures. Could you have a problem with your compliance?
31% wondered if they could get higher rents for their property, 27% wonder if they can get a guarantee for their rent. Why not contact us regarding our rent guarantee scheme. 23% worried about the forever changing regulations and legalisation. The same percentage wondering whether they can still deal with day to day tenant enquiries and maintenance issues on their properties any longer.
The overall survey clearly showed that landlords are still concerned not only about compliance, but also with tax and if they are achieving the correct rental figure. It is important that landlords research and keep themselves up to date with the market at all times.
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