Why not increasing rent annually is bad for business and bad for your tenant

Increasing rent annually is generally considered common practice for landlords, as it helps them keep up with inflation and maintain the profitability of their rental properties. 

Here Property Expert Julie Ford explores the reasons why it can be seen as bad business sense for landlords not to increase the rent annually:

 

1. Inflation: Over time, the cost of living typically rises due to inflation. If landlords do not increase the rent annually, they may find themselves falling behind in covering the increased costs of property maintenance, property taxes, and other expenses. This could result in reduced profitability or financial strain.

 

2. Market Value: Rental rates in the real estate market are influenced by supply and demand dynamics. By not increasing the rent annually, landlords might miss out on potential revenue if market rents are rising faster than their current rental rates. They risk underpricing their property and not maximising its value.

 

3. Fairness to Tenants: Applying modest and reasonable rent increases annually is often considered fairer to tenants than sporadic or significant increases at irregular intervals. It allows tenants to plan their finances accordingly and avoids potential financial shocks that could result from sudden large rent hikes.

It also stops tenants who may need to move on from being financially stuck where rent hasn’t been increased for years and now they can’t afford market value rents as they have been budgeting to the lower rent for years.

 

4. Maintenance and Upgrades: Regular rent increases can provide landlords with the necessary funds to perform maintenance, repairs, and upgrades to their rental properties. Neglecting these essential tasks due to stagnant rental income could lead to a decline in the property's value or tenant dissatisfaction.

 

However, it's important to note that local rental market conditions, tenant relationships, and other factors can influence a landlord's decision to increase rent annually. Each situation may require careful consideration and balancing the financial interests of the landlord with the need for a fair and sustainable rental arrangement.

 

Staff training is a waste of money

 “If I pay to training them, I’ve lost that money if they leave”

Is a very common reason agency owners give to not investing in their staffs knowledge and ongoing training

 

“But what is they don’t leave?”

I answer… you are left with uneducated staff lacking knowledge and ability, providing a very poor level of service.  Is that the ideal business model?

 

 It is more important than ever for letting agent owners to keep their staff fully trained especially with the pending enactment of the Renters Reform Bill which will be the biggest change to private sector legislation is 30 years.

Agencies cannot afford to be behind with this legislation.

 

Expertise and Knowledge: 

Training ensures that staff members have a deep understanding of the industry, including legal requirements, market trends, and best practices. This knowledge equips them to provide accurate and up-to-date information to landlords and tenants, resulting in better service quality.

 

Compliance with Regulations: 

The rental market is currently subject to 169 Laws and 402 regulations, such as tenancy laws, safety standards, and data protection rules. Proper training helps staff stay informed about these regulations, reducing the risk of non-compliance and potential legal issues, hefty fines and in some cases prison.

 

Improved Customer Service: 

Well-trained staff can provide excellent customer service, addressing queries, concerns, and issues effectively. They are better equipped to handle difficult situations, negotiate contracts, and maintain positive relationships with landlords and tenants, fostering trust and satisfaction.

 

Enhanced Efficiency and Productivity:

 Training enhances staff members' skills and office moral, enabling them to perform tasks more efficiently. This can include utilising property management software, conducting effective property inspections, or managing tenancy agreements. Increased productivity leads to smoother operations and overall business success, which organically increases business revenue.

 

Adaptability to Industry Changes: 

The rental market is dynamic, with evolving trends, technologies, and customer preferences. Ongoing training keeps staff updated on industry developments, allowing them to adapt to changing circumstances and provide innovative solutions to meet clients' needs. This helps keep your agency ahead of the competition by foreseeing trends to legislative changes and taking a proactive rather than reactive approach  

 

Professional Image and Reputation: 

Well-trained staff reflect professionalism and competence, which enhances the image and reputation of the letting agency. Satisfied customers are more likely to recommend the agency to others, resulting in positive word-of-mouth marketing and potential business growth.

 

Overall, investing in staff training demonstrates a commitment to excellence, legal compliance, and customer satisfaction. It empowers employees to deliver high-quality services, adapt to industry changes, and maintain a competitive edge in the market.

The Changing Landscape of Pets in Rental Properties in the UK

Introduction:

In the UK, the issue of pets in rental properties has long been a subject of debate between tenants and landlords. 

Historically, many landlords had strict “no pets” policies, making it challenging for pet owners to find suitable accommodation. However, there has been a noticeable shift in recent years, as attitudes towards pets in rental properties are evolving.

 In this article, we will explore the changing landscape of pets in rental properties in the UK, shedding light on the rights and responsibilities of both tenants and landlords.

 

The Shifting Perspective:

Previously, landlords often justified their “no pets” policies due to concerns about property damage, noise complaints, or potential allergies of future tenants. However, the increasing recognition of the positive impact pets can have on tenants’ mental health and overall well-being has led to a change in perspective. Many studies have shown that owning a pet can reduce stress, combat loneliness, and enhance emotional support. Recognising these benefits, landlords are now more open to accommodating pets in their rental properties.

 

Tenant Rights and Responsibilities:

Tenants in England currently have the right to request permission to keep pets in rental properties, unless there is a valid reason for the landlord to refuse. However, it is important for tenants to approach this matter responsibly. They should consider the suitability of the property for their specific pet and demonstrate their ability to care for and control the animal properly. Tenants should also be mindful of their responsibilities to ensure that their pets do not cause damage or become a nuisance to neighbours.

 

Landlord Considerations:

While the perspective on pets in rental properties is changing, landlords still have valid concerns about potential risks and damages. Landlords have the right to refuse permission if they have reasonable grounds, such as a property being unsuitable for pets or if the pet poses a risk to other tenants or the property itself, or there is a superior lease clause forbidding pets in the building.. However, blanket “no pets” policies are increasingly seen as unfair and may be subject to challenge. Some landlords have adopted alternative approaches, such as pet-specific rental agreements or requesting a higher rent be paid for a pet as it is illegal to request a deposit higher than 5weeks rent in most cases.

 

Supporting Responsible Pet Ownership:

To ensure a harmonious coexistence between tenants, landlords, and pets, it is essential to promote responsible pet ownership. This includes encouraging tenants to seek suitable housing for their pets, ensuring proper training and socialisatio, regular exercise, and providing appropriate care and veterinary attention. Landlords can also play a role by establishing clear guidelines for pet ownership within their rental agreements and maintaining open lines of communication with tenants regarding any concerns that may arise.

 

Conclusion:

With the impatiently awaited Renters Reform Bill finally making is debut to the Parliamentary process last week, it is clear the Government is aiming for a more including approach to renting for pet owners, but the much feared  blanket ban on landlords refusing pets altogether was not part of the Bill, instead the Government have taken a thankfully, common sense approach and set out a new clearer process for tenants who wish to have a pet and timelines for landlords to accept or refuse said pet.

Provisions have also been amended the Tenant Fees Act 2019 to allow landlords to ask a tenant to purchase the approximate insurance or pay the premium if the landlord covers this risk with an addition to his own insurance policy or takes out additional cover.

 The landscape of pets in rental properties in the UK is gradually evolving as the benefits of pet ownership become more widely recognised. Tenants now have the right to request permission to keep pets, while landlords are increasingly open to accommodating them. However, responsible pet ownership and mutual respect between tenants and landlords remain crucial for maintaining a healthy and positive environment for all. By striking a balance between tenants’ desires for pet companionship and landlords’ concerns for property preservation, a middle ground can be reached that benefits both parties and their furry friends.