Increase In Monthly Rent Reported By Some Letting Agents
The Association of Residential Letting Agents (ARLA) produced a Private Rented Sector Report dated January 2015 that covered a variety of things. One of these was about rental income that landlords charged their tenants. The research was carried out by Opinium Research and involved 465 letting agent offices that are members of ARLA. The average number of properties that each ARLA office looked after in January 2015 was 184.
Apparently, 27% of letting agents reported that from December 2014 to January 2015 they had seen property rentals rise. There were 4% that had said rentals had dropped with 22% saying that from 1% to 5% of tenants had been able to agree a lowering in their rental payments. The later is rather surprising in view of the fact that there is a very active rental market.
Looking at the regions in which property rentals rose, it was found that the largest increases seen by agents was in the East of England with 35%. In comparison, in Wales, only 11% witnessed rises. Wales also saw the biggest number of properties drop their rent – 11%.
The residential rental property market is extremely buoyant at the moment and, in fact, has been for quite some time. Properties are not left unoccupied for many weeks – 3 weeks in fact. On average it only takes 5 viewings to get a new tenant.
The report makes for interesting reading so you may wish to look at one on the ARLA’s website.
Despite the above, prospective new landlords that are considering entering the investment property sector for the first time and experienced landlords for that matter need to do their due diligence when considering buying a property to rent out. What market do they wish to cater for? Is the property suitable for that market? Is the property located in the most suitable place? Do the financials all add up?
We hope that you have found the above informative.