The booming sales market means landlords should shift focus away from high-paying tenants to more reliable long-term renters, even if they pay less, a rental consultancy says.
Landlord Assist, which operates a tenant eviction and rent recovery service, says that when sales of houses and flats were in the doldrums, landlords could set rents at record highs because demand for rented accommodation outstripped supply.
But with more tenants now looking to purchase their own homes, helped by government schemes such as Help To Buy, landlords need to shift focus.
Landlord Assist managing director Graham Kinnear says: “This could lead to a greater choice of properties to rent in parts of the country and more competition between landlords for the best tenants. It’s tempting for landlords to set rent levels high but instead it’s better to focus on attracting the right type of tenant at the right price.”
The alternative for over-optimistic landlords, the consultancy claims, is a 2014 marked by
void periods and the risk of arrears because the properties are priced too high for tenants.
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Comments
'....Landlords 'Should Favour Reliable Tenants Over High Rents'
Good landlords have always done this but, probably more importantly, GOOD agents point it out to landlords.
That is not to say one should accept Low rents!
@sceptical as always
Well you haven't met me then!
We have a tenant in a property where they have been tenants for seven years with no rent increase! We also have one who's situation changed and we reduced the rent by £50 pcm rather than have a void period. Better to have tenants than a void. Simple maths really.
Rent £600 pcm offered for a long term tenancy.
Rent £650 pcm offered for a six month only tenancy meaning £300 extra over six months BUT that is have half a month's rent. If the property is void for just two weeks then that benefit is wiped out!
Th best return is not always the highest rent.
I have yet to meet a landlord who listens to "less money is more money."
Mr Landlord is invariably after the best return for their investment, and that means the highest rent. Whether this comes at a higher risk of voids is irrelevant, that is a worry for another day!
So do I agree. Very difficult to get the message across to some landlords though.
I think this is such a good point that cannot be emphasised enough!!!