Property Rents Remain Buoyant
Rental prices are continuing to rise indicating a continuing buoyant property market. Average rents increased by 2.1% over what they were last September. The average monthly UK rent now stands at £927. This compares to an average monthly rent of £1,593 in London.
This is good news for landlords, as it does mean that they can increase their rent to recover any anticipated increase in costs. A lot of these costs are compulsory costs associated with new regulation and taxation changes. Add to this the prospect of interest rate rises and the uncertainty around Brexit and you will begin to understand that the increase in average rent across the country is a welcome relief for landlords.
The demand for rental properties continues to rise as a lot of younger buyers are priced out of the house buying market. This again, is good news for current landlords and those wishing to invest in property.
With a lot of tenants currently looking to rent property, landlords do need to be careful when it comes to choosing a tenant for their investment property. As a landlord, you should always vet your prospective tenant before offering them a tenancy agreement. 48% of landlords do reject tenants with bad credit, for example a CCJ on their credit file. 42% of landlords would reject tenants with previous insolvency issues. Those in receipt of housing benefit and universal credit are also less likely to be accepted by landlords. As a landlord, you need to decide what tenant criteria you are happy to accept.
Other checks you should consider:
- * An ID check – proof of identity – is the tenant who they say they are?
- * Are they smokers/non-smokers?
- * Do they have pets?
- * Do they have professional jobs – can you obtain an employer reference?
- * Affordability check – can the tenant afford the rent based on their stated income?
- * Bank details validation – previous 3-6-month bank statements to provide an indication of outgoings.
- * Former landlord’s reference – have the tenants paid their rent on time and looked after their property?
Currently, rent payment history is not catalogued in credit scores. Tenants who have paid their rent on time previously are more likely to do so again so being privy to this information would certainly help landlords to gauge the suitability of tenants.
Robert Oulsnam and Company Lettings manage properties for 100s of landlords and are very good at vetting prospective tenants. We’ve let a total of 37 properties to date this October. Last week alone, we rented 25 properties!
We also keep strong tabs on the property market and know what types of property let well and which properties to avoid. We are local to the market and can advise on rental amounts and prospective tenant types.
If you’re a landlord and would like us to manage your rental properties and vet prospective tenants, please contact Robert Oulsnam and Company today.