In London, those looking to rent a house or flat or move from their existing rental into a new one, are struggling due to a shortage of good rental stock that has led to at least 90% of current renters renewing their leases rather than moving on as they did previously. These moves could have been into a bigger or better property or to a new area. Now, people are staying put.
The impact of economic uncertainty
One of the main reasons for this is economic uncertainty. With the question mark still hanging over what is happening with Brexit and prices rising for everyday goods, including food, people are looking to maintain or reduce how much they spend on rent. This means staying where they are and, potentially, negotiating with their landlords to limit any rent increases.
The role of the estate agent
Many landlords use an estate agent to manage their rental properties. Tenants, then, will often turn to the estate agent first when they want to renew their tenancy. The estate agent will be responsible for communicating with the landlord and negotiating any renewal, including an increase in rent, as well as getting the new tenancy agreement signed.
Estate agents can also carry out other functions on behalf of the landlord. They can, for example, create the tenancy agreement and set up an inventory checklist for when people move in or out of a property, often using property inventory software.
You may ask what is property inventory software – it is an automated system that allows a landlord to manage the inventory that comes with their rental property. It protects them, and their tenants because it lists exactly what has been included with the rental and the condition of these items.
The benefits for landlords
There are big benefits for landlords when people renew their tenancies. First, they don’t lose money while the property sits empty. Second, they don’t have the added costs that come with getting a property ready to rent, painting and decorating, for example, or replacing furnishings. Finally, there is the reduced risk when renting to a tenant who has previously paid their rent on time and maintained the property; they are a known quantity, which can’t be underestimated.