Now is the time to act…. The renters reform bill
The next 12-18 months are crucial for landlords, as you will need to get the best rent possible before legislation comes in from the renter’s reform bill and potentially causes your profits to plateau.
The bill contains a proposal for only one rent review per year and tenants will have the ability to refer any rent increase they don’t like to a tribunal free of charge.
This sounds like a good idea on the surface, but an unintended consequence could be that tenants decide to refer all rent increases to tribunals and as such rent increases are limited to 1% - 3%.
The final detail of the bill is yet to be revealed but it would not be unrealistic to imagine that the government decides to put a cap on rent increases.
As such, it is conceivable that two properties side by side could be charging completely different levels of rent due to restrictions on rental increases.
Another consequence could be that the inevitable delays that will occur at tribunals due to an influx of new referrals could be used as a delay tactic from tenants to pay less rent for as long as possible.
This may sound like great news for tenants, but ultimately, if interest rates and mortgage payments overtake the amount a landlord can cover with rent payments, then that landlord will not see their property as financially viable anymore and they will sell.
And landlords selling is not good for anyone, as a lack of supply in the market will lead to huge demand and extortionate rents.
So, time is running out for landlords to act and there is no one better equipped than us here at Rocket PM to make sure you rent your property for as much as the market can offer.
Since we launched last year, we have seen an average rent increase of 23% across all our properties from when we took them over
There was even one example where a landlord was receiving £2250 per month while with their previous agent and they were advised to accept £2600, but we took the property to the open market and got the landlord £3450 per month, which is a 53% increase, and there is no reason we can’t do that for you.
So, if we can leave you with one message, it’s don’t accept complacency and a lack of urgency from your agent and make sure you are getting the most out of your properties today.
