What can landlords and tenants expect when it is time to renew?
Before the term “credit crunch” entered the public domain and the market was soaring, most agents experienced a higher than average level of renewals as tenants tried to insulate themselves from escalating rents and increased demand for property. Come renewal time, many tenants found that they had to negotiate their rentals afresh and accept significant increases in order to remain in situ.
Now that conditions have changed dramatically, lettings departments are still presiding over a record number of renewals. This time around, however, everyone involved in the process is increasingly sensitive to increased outgoings. Tenants may be deciding whether or not to downsize as landlords are struggling to make their numbers come right with the higher cost of finance.
That being said, tenants realise that rents have moved on to a higher level generally and that relocating themselves, their families and belongings has its own significant costs. In turn, landlords are reluctant to incur void periods. Furthermore, a good landlord appreciates and respects a good tenant and is usually willing to accommodate them as much as is reasonable.
By way of a fair resolution, we are negotiating an upward adjustment for inflation in line with RPI. This figure (4.2% at time of going to press) is readily available from the Office of National Statistics as well as Lonres, the trade website. As agents, we also benefit from having an objective standard to assist us in carrying out our responsibility to our clients, as well as our duty of care to our customers.
Tessa Lang
Lettings Manager
Des Res Ltd.
