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Buy-to-let property consultants



Tenant management:
 
 - Inventory
 - Utility, council tax & other bills
 - Tenant referencing
 - Contract signing & legal paperwork
 - Maintenance
 - Renewal management
 - Rent level management

Rent level management

It is clearly important to ensure the property is yielding the maximum rent and generating the minimum costs. In fact, Buy2LetExpertís experience over many years suggests the best returns are actually achieved when the rent is a little below the maximum possible ensuring costs are kept to a minimum. There is no point having a £1000 per annum higher rent if costs rise by £1500 !!

An example might be a 2 bedroom apartment in North London attracting a rent for 2 sharers of £240 per week. An applicant might well be prepared to pay £260 per week but in this scenario at least 4 will share by using a sofa bed in the living room and/or a couple possibly sharing one bedroom. The extra rent equates to £1040 more per annum. On the other hand, the now four occupants will double the wear and tear on the property. We must expect to paint more often, change washing machines more, replace more chairs and tables etc etc. The £1040 quickly starts to evaporate and remember the property will be overcrowded. Future viewing with these tenants in situ will be tricky and so voids are more likely. In addition, all or some of the tenants are likely to move on more frequently causing additional costs and work. New contracts must be formed with new tenancy deposit scheme costs and more. Soon the £1040 and more is lost. In short do not be too greedy on rent. Look also to minimise costs and reduce risks of problems. There will always be more admin and issues in a crowded house.

Many landlords spend a lot of time analysing and obtaining the correct rent at the time the property is first let. A year or two down the line, the rent is the same and the landlord rationalises this on the grounds that 'they are good tenants' and 'a few jobs need doing'. In other words a lower rent is fine! It is not! Buy2LetExpert will never let this happen. Here is a guide to how we would proceed:

  • The Buy2LetExpert maintenance should be fully up to date during the tenancy
     
  • It is important that about six weeks before the contract expires, the rent in the locality of the property is checked. This is easy investigated using the appropriate portals. Placing 'dummy ads' to check demand is a possibility. If the rent has gone up significantly, examples of properties that illustrate this are printed.
     
  • Buy2LetExpert consults the landlord as to whether the is hiked rent now or delayed by one year.
     
  • Assuming the decision is to delay the rent hike one year, Buy2LetExpert writes a letter to make it very clear than rents have risen in the area and were in not for the landlordís generosity the rent should now be £xx higher. We then attach examples collected to illustrate this. Furthermore, we state that although we are ignoring market conditions this year the rent must reflect the market in one yearís time. Then the following year we are in a very strong position to hike the rent without destabilising the relationship with the tenant. Our new letter would enclose a copy of the previous yearís letter.
     
  • If a rent hike is proposed, it may be possible for Buy2LetExpert to offer some improvement to the property that costs relatively little. A comment like: 'should you wish to renew we could organise garden clearance or decoration or some other such improvement'. As discussed elsewhere Buy2LetExpert will always prefer maintenance to be executed while tenants are in situ paying rent. Leaving it to the end of the tenancy results in voids while the work is done and so is a false economy.

 

 

 

Managing buy to let tenants

Maximisation of rental potential for
the minimal investment

 

 

 

 

 

 

To contact us call: 020 7482 0300 or email