Rents Rise as Serious Arrears Fall Sharply
Average rents have increased by 3% across the UK over the last year, with the largest rise of 8.8% occurring in Scotland. London also saw a significant increase of 5.1%. This gives some credence to the idea that rents may be able to keep pace with any interest rate rises, at least to a degree. Landlords have also been buoyed by a reduction in the number of serious arrears (those more than 2 months behind on their rent). In the first quarter of this year, 68,000 tenants were in severe arrears, down from 105,000 in the same period last year, representing a staggering drop of 35%.
Hidden Fees Still an Issue for Many Landlords
The Telegraph has exposed the small print in many letting agents’ contracts which could cost landlords thousands of pounds. Unfair maintenance fees, sneaky sub-letting and issues arising from change of ownership could all end up costing landlords dearly. This is precisely the kind of practice Rentify was set up to counter and it is shame so many landlords still must suffer these problems
Rentify’s Tip of the Week
A recent case study has revealed the importance of checking your mortgage lender’s conditions regarding benefits tenants. Some will not allow it and this can lead to problems if a tenant’s circumstances change. Always know what the conditions are and how to proceed if your tenant does have to start claiming benefits. And remember that ending the tenancy may not be the best course of action.