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.