News and Press releases

Landlords' market posing fresh challenges for renters

31/07/2010

1 USE PROVEN CHANNELS

Few private landlords have the time, experience or desire to manage their property and instead use a letting agent. Although a tenant will pay more to find accommodation through an agent, they can expect to be chauffeured around a variety of properties and, once in situ, will get a full
inventory/condition report on the chosen property. Agents also ensure any necessary repairs are carried out quickly and efficiently.

2 AFFORDABILITY

Renting can provide financial “breathing space”. Static property prices mean tenants who save regularly may actually find themselves better off in the medium term compared to those who have been owner-occupiers for the same period. A nest-egg can be built up through not having to paying for things like maintenance, repairs, buildings insurance and, in many cases, furniture and various electronic gizmos.

3 LOCATION, LOCATION, LOCATION

A simple rule of thumb is that the further you move from the centre of town the lower the rent will be.

However, think about supplementary, but important, issues like schools, shops and local amenities. And no matter how much of a “wow” factor a property exudes, if you need a car journey to buy basics such as a newspaper or a loaf of bread the costs will mount.

4 SHARING

Consider sharing to cut costs. Pro-rata, two people renting a two-bedroom flat is less expensive than one person having sole use of a one-bedroom flat.

However, do check personal compatibility before making such a commitment.

It is amazing how many previously great friends quickly fall out after sharing a home and discovering one another’s “personal habits”.

5 BE TRANSPARENT

Avoid any last-minute hitches by being completely honest with the agent or landlord. If you have a pet, for example, always ask permission before signing the lease. The same applies to special requirements – such as if you intend wholly or partially running a business from home, even if it involves merely using a laptop and some paperwork.

6 BE PRESENTABLE

With several parties chasing one rental property, it is increasingly common for landlords to make a decision based on the personal appearance and demeanour of the potential tenants.

They will let property to those they feel most comfortable with, meaning tenants giving the impression of having a sense of personal responsibility and respect for other peoples’ property

7 PART-TIME ADVANTAGE
Tenants who intend to stay in a rented property only during the week and return home to their families at weekends are particularly welcomed by landlords as it reduces wear and tear on furniture and fittings. If this is your situation then do publicise the fact as the landlord may well be willing to compromise on the rental rate to achieve this type of tenancy arrangement.

8 FURNISHED OR UNFURNISHED?

Just half of DJ Alexander’s enquiries are now for furnished accommodation, compared to 90 per cent three years ago, so it should be perfectly possible to rent a flat – even for a relatively short period – and still enjoy the comfort and familiarity of your furniture etc.

Indeed, we have known of cases where the occupier has leased a furnished flat, put the landlord’s furniture into storage and moved their own goods in.

9 LONG-TERM OPTIONS

Most leases are six-month short-assured tenancies but these can be rolled over into longer periods, although the landlord will retain the legal right to regain possession by giving 60 days’ notice.

Landlords like continuity so many will be willing to enter into longer-term agreements, especially when dealing with a “model tenant”.

However, it is unlikely that a landlord will accept a “fixed rent” for long periods – almost certainly they will insist on a clause allowing them to increase the rent in line with inflation.

And should the tenant move out before completion of the lease they will be responsible for paying rent even if the accommodation lies empty.

10 ACT NOW

The level of supply can only get worse in the medium term, due to the shortage of mortgages, while there are little or no additional properties coming on to the rental market because of the collapse of buy-to-let as an investment vehicle. All that points to increasing levels of rent and reducing levels of choice. If you find the correct property and feel comfortable with the agent of landlord then act quickly and decisively.

www.djalexander.co.uk

THE SCOTSMAN, 31 July 2010

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