This three-minute read looks at the changing rental
market and what it means for landlords.
With
the rental market changing enormously over the past decade, savvy landlords
need to stay on their toes to make the most of their investment.
General
trends
- Since 2010, the sector has almost doubled in
size; these days, about 19% of all households rent. - Many tenants are renting for longer.
- Renting is no longer all about young
singletons. An increasing number of renters are aged 35 to 44 and have
children. - Increased red tape: the number of
laws relating to landlords has jumped by about a third in a decade.
What tenants want
Smart,
clean interiors: The explosion of social media means tenants now
expect more when it comes to décor. Landlords don’t have to spend a fortune,
but a property must be maintained to a high standard and look fresh and modern. Grotty
appliances and broken furniture won’t cut the mustard.
Location: Tenant
priorities have shifted, particularly during the pandemic. The work from home
phenomenon has seen some tenants prioritise access to open space and nature
over proximity to commuter transport. It remains to be seen how this trend will
pan out in the future.
More
space: As more people with children are renting,
demand for properties with outdoor space has increased.
Broadband: Flexible
working, and the rise of streaming and gaming, means good broadband is a must.
Safety: Besides
good locks, and secure doors and windows, tenants expect landlords to take
every precaution when it comes to gas and electrical safety.
Pets: With
more people viewing renting as a long-term lifestyle option, demand for
permission to keep pets has surged, too.
Implications
for landlords
Today’s
rental landscape presents a real opportunity for landlords who can build a good
rapport with their tenants. Happy tenants are more likely to stay put, meaning
a landlord can save on the costs and stress of regularly sourcing new tenants.
However,
increased red tape means there is more scope for landlords to trip up – and
wind up in court or with a hefty fine. Note too, today’s tenants tend to be
well informed about their rights and have access to an array of tenant action
groups for support. Cutting corners or being lax when it comes to repairs and
maintenance can prove costly.
Key
takeaway
To
enjoy a good return on your investment you need to put in the legwork. If work
or family commitments make this a stretch, get an experienced letting agent to
do it for you.