Nowhere is this saying truer than in a turbulent property market. The way in which the HMO property market has grown and changed in Brighton over the past few years has left the city in a bit of a conundrum this summer. There is an oversupply and under demand of such properties, leaving some properties empty and landlords looking for answers.
That’s a problem we delve into across all of our produced media and conversations we are constantly having with our landlords (and anyone else who will listen). But this article isn’t about the hows and whys, it a consideration of one way to secure yourself in such a market.
One way to ensure your property is let for the next year is to really focus on keeping the tenants in there, in there. We always think good tenants are the absolute backbone of this industry and when found, should be kept at all costs, but this is especially true when tenants at all, let alone good tenants are hard to come by. In such a market, they should be valued above all else!
Obviously, this thinking doesn’t hand all the power to tenants at the end of a fixed-term when negotiating the renewal, but it is a time when landlords will need to think carefully about rental prices at this point, as there may be plenty of other options in the market at the same or lower rate than the tenants have previously been paying. In such a market, our advice to landlords is always to consider the value of keeping tenants in situ and ensuring the rent is continual, by avoiding any void periods. We have seen even some of the best properties empty for far longer than previous years.
The other thing to consider in properties that see higher turnover than others is why tenants don’t want to stay. Could areas be improved to make your offering slightly better? Have the tenants asked for something you didn’t want to provide? Are there minor repairs that have been done so many times, things could just be replaced instead?
Across the board for properties coming new to market, our advice to landlords in the current market is in 3 stages: 1, ensure your property is looking at its best, because others certainly will be; 2, consider your overall offering, should you offer any extras to make your property stand out?; and 3, make sure you are priced right for what is on offer, considering how competitive the market is.
But why do these points only need to be considered when tenants are vacating? Isn’t there more value in making sure you are always keeping on top of these points, keeping your good tenants happy, and avoiding having to do any work in costly void periods?