Date Published 28 April 2016
Apparently, well over 80% of Landlords are looking at increasing rents to cover the costs of the higher taxes coming. Bizarrely to me, apparently also nearly 80% (78%) of Landlords also feel the tax changes will deter them from investing in more properties to rent, with half considering getting rid of properties. Presumably the same properties where they are putting the rents up on…!!
Another reason I take with a large pinch of salt the surveys I read.
What I can believe, is what we at Hentons are seeing. That there are much more tenants then properties available. Especially with one bedroom properties. Here, we are often having so many tenants enquire that we end up having several prospective tenants who've lost out, devastated they were not chosen…and often two or more of them would of also made super tenants. It's just that we would of gone with the tenant that was the best of the best.
Often agents just go with the first tenant to show interest and if they pass the referencing, in they go. Here at Hentons, if have a lot of interest, we would prefer to take a day or two extra, to identify the best tenant amongst the interested parties.
This often results in a higher rent achieved and depending on the Landlords requirements, a longer term tenant which would save the more frequent ‘Let only' estate agents fees that come with more regular changeovers of tenants.
Most importantly, this lessens the chance of putting in a poorer quality tenant who could be likely to be a bad payer or treat the property badly, either costing you money.
So in summary, yes the increases taxes on rental properties will cost you money but quality, well chosen, long term tenants can help offset this by the avoidance of more money being lost on void periods, bad payers and more regular ‘Let only' estate agency fees, in addition to the likelihood of increased rents due to some landlords selling their properties meaning even less available stock.