In early 2017, our industry has taken a knock or two from media in the UK, with rising rents and admin fees being at the forefront of many people’s anger. The influx of anti-agents/landlords feelings contributed towards the market being very quiet in January with demand dropping on a yearly like for like basis.
At Moovahome, we have recently removed admin fees for room rentals and added in a week free to try and entice tenants into securing the rooms. This has resulted in us having an increased 98% occupancy on managed rooms. With the single/family lets, our occupancy is currently sitting at 97.3% which is below our usual 99% standard. Looking at the reasons why tenants are not frequently moving, we quickly found that the main cause was the increased asking prices for rents. Due to this, in January we tested taking away the admin fees from a number of the homes and flats we had available. We left the rents at the desired rate the owner wanted (high end) and found that this did not affect the tenant leads.
Moving into February, the early signs are good. We have increased lets month to month by 65% to date with double the viewings taking place each day over January.
As an agent, we will look at each home singularly, if you leave a house empty at £750.00 a month, instead of taking the tenant at £700, your loss over the year is £150.00 plus the utilities while empty. Although the market is returning to a strong position, we feel high rents are the main stumbling blocks against tenants securing a home or even moving.
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