The chairman of an agency chain is advising landlords to prepare for stock surpluses in some areas and to win tenants by offering incentives - including half-price rent for up to three months.
Simon Shinerock - chairman of Choices Estate Agents and its associated brands Sinclair Hammelton and Daniels Property Services - tells the landlord website Property Tribes that it’s “an enormous mistake” for landlords to hold out for normal market rents when there may be a glut of properties available to let.
“Going from £1,000 rent to £500 for three months might sound crazy but if that gets you a great tenant who might be there for four years or five years, it makes sense in the long run” he tells Property Tribes’ Vanessa Warwick.
Shinerock is warning that the fall out from Coronavirus may see substantial shifts in the rental market, with properties previously used for Airbnb lets swinging back to long-term lets, and large surpluses of available rental units in areas such as around Gatwick and other airports where demand is likely to plummet.
The Choices chief says that the damage to the rental market caused by the virus is likely to be slow-running with many effects of the withdrawal of furlough and reshaping of the wider economy not becoming apparent until 2021.
He says the key is for landlords to be aware of the local conditions around them: some areas will see stock shortages, while others will see gluts.
His interview is part of a series called Simon Says, now on Property Tribes: we’re grateful for the website for allowing us to use the video of the interview below.