Rent Review – Are you hurting enough?
All too often, people do not create action until such time there is too much pain.
The pain of missing out, a financial loss or simply time management.
A great example of this? When did you change your utility supplier or your mortgage?
We know there may be better deals out there but the pain of action over a chance to save a few pounds can be too much for many people.
Appointing, or changing, a letting agent could also be a pain but with the right company there are many benefits.
What we have found recently is that people become complacent, when self-managing and the rent keeps coming in, what actions are needed, or done?
Always check your numbers
In a recent case a property was managed by a another letting agency and the property ticked over. With fresh eyes, we looked at the package and seen that the property had a House of Multiple Occupancy (HMO) Licence but the figures didn’t stack.
A rent review showed that Income was £1,000 per month, on the rare occasion of full occupancy, but with a strew of associated costs.
As a comparable, rental income for a family on the 4-bed local housing authority rate was £1,220.41, with none on the associated costs for an HMO Licence Fee, Council Tax, Wifi and TV Licencing.
To help the Landlord here, we ended the HMO tenancy and put a lovely family into their new home. The increase in net rent by 68% was welcomed by the Landlord.
If you have appointed a Letting Agent, or not, I would encourage everyone to take responsibility for their own property and review rent annually. We review rent every February after the Department of Work and Pensions publish their annual change to the Local Housing Authority (LHA) Rates. https://www.gov.scot/publications/local-housing-allowance-rates-2020-2021/
Should the property not be in receipt of the LHA rates but you have an action point each February to have a rent review, you will be ahead of the game in ensuring your property is achieving what it can.
If your tenant is in receipt of housing benefits, please ensure you write to the tenant notifying them of the rental increase. The increase is only paid when it is asked for as the council do not volunteer additional payments.
Should you have any questions, please call on 01315107590 or visit our website https://winwinpropertymanagement.co.uk/