22nd November 2021
What Has The Pandemic Taught Us and How Has The Market Changed?
Demand For Larger Accommodation. With lockdown forcing people to work from home and many of these people realising they can make working from home permanent more space at home is needed. Hamptons International recently reported that the biggest growth in rental yields was in 4 bedroom houses! Up 10.6% year on year. (1 beds up by only 3.7%) The advice from rental agents to investors has always been that 1 bed properties provide the best yields. The early signs are that this advice may need to change. The 'Halo Effect'. I reported on this in an earlier blog, Click here to read However, this now seems to be the new norm. The suburbs have seen the biggest growth in rental yields as commuting becomes less of an issue with people working from home.Less Evictions. I have always advocated for good communication between a Landlord and Tenant and where a property is managed, between Agent and Landlord and Agent and Tenant. With the eviction ban Landlords and Agents have been forced into different methods of resolving issues. Often a simple conversation and some empathy can make a bad situation look much simpler to resolve. Where there is empathy and understanding both parties are far more likely to be flexible and more motivated to resolve issues. Not to mention the cost savings! Solicitors are not cheap and Landlords are rarely able to recoup costs. MoJ data says 'when compared to the same quarter in 2019, Landlord possession claims, orders, warrants and repossessions by County Court Bailiffs have decreased by 64, 75, 69 and 35 per cent respectively.'Happier Tenants. There has always been a culture within managing agents that the Landlord is the 'client' and therefore the tenants needs or demands are secondary? The Pandemic has really exposed this attitude as a...
Grow by outsourcing to rental property management companies – it’s the future of lettings. Lockdown 2.0 With the new lockdown from Nov 5th to Dec 2nd (at the earliest) it is even more important to make sure your managing agent is on the ball. Communication between agent and tenant must be ongoing with any potential issues nipped in the bud. Eviction Ban. Despite the eviction ban being over bailiffs were being asked by the Government not to evict anyone in Tier 2 or 3. With the new lockdown this will now include the whole of England. This will set evictions back by at least another 3 to 4 months. If you have an abusive, anti-social or non-paying tenant then I’m afraid your pain will continue well beyond Christmas and probably into Spring next year. I have represented many Landlords with problem tenants (not COVID related) and I am pleased to confirm I now do not have a single Landlord in a situation where they are having to deal with problem tenants and not one had to go through the courts. I am happy to advise any Landlords (you do not have to be a client of PPM) and help them find a solution. During Lockdown I have already communicated with all the Landlord and Tenants I currently look after to make sure they know how to use our fantastic Propertyfile App and how they can reach me 24 hours a day. I have also assured the tenants that if they find themselves in difficulty that it is much better to contact me now and, along with the Landlord, put a plan in place that can...
White Label rental property management companies boost profits & irradicate cost. With more than 10 estate agencies per week going bust, it’s fair to say that Covid-19 has changed everything for estate agencies and rental property management companies. Only the fittest will survive so right now, it’s all about growth. But growth comes with cost, particularly in the lettings industry. More admin staff, more fees, more everything except sales. Some argue that the days of the high-street estate agency are over, but I doubt that’s the case – at least in the near term. We’re about to see one of the most significant shakeouts the property market has ever seen. The question is how can you grow without increasing your overhead costs disproportionality? Increasing lettings is a great way to improve your regular turnover and help protect your business from short term impacts such as the pandemic. No matter how attractive the additional revenue may be, property management comes with a LOT of administration and associated costs. People, subscriptions, licenses … it’s a long list. You may have some capacity in your team, but how much? The solution is to remove the burden of property management from your business. But, what about profits I hear you say. Let’s be clear, removing the burden doesn’t mean removing it all together, it simply means letting go of the administration and outsourcing that aspect of your lettings business to one of the new breed of rental property management companies. Not only will outsourcing allow you to hire more fee earners, you won’t have to worry about scale. Take on as many properties as you can close, knowing that the outsource agency can expand to fit your growth. It is possible...
What Has The Pandemic Taught Us and How Has The Market Changed?
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