FEAR is a driving force in the world of property: fear of missing out, fear of losing money, fear of buying or renting something with neighbours from hell! We get it.
Landlords and tenants comprise a huge slab of London’s property scene and each group of people have their own specific fears. If they knew what scares each other the most, they might enjoy nicer relationships.
We with both parties every day — often in times of turbulence — so we listen to the common denominators (and ask!) to help compile the biggest fears faced by landlords and tenants. Read ahead … if you dare.
As is stands today, just under half of the population of London are renters, and their biggest fear is unexpected rent rises.
Many may face this soon, with all major banks lifting interest rates for investors at the turn of the year despite the Bank of England official rate not moving.
Mortgage rates on investment loans have climbed in the past couple of years as banks and regulators try to slow booming house prices.
Some rate rises get passed onto tenants immediately but we always advocatre to our landlords that they should take a “considered approach” to rent reviews and give tenants plenty of notice. While it’s reasonable for landlords to raise the rent on occasion, finding room in the household budget to accommodate an unexpected rent rise can be stressful. After all, a great tenant is worth more in the long-run than another £25 a week.
Another big fear of tenants is having their lease cancelled, particularly if they are only given a few weeks to leave, and it’s doubly-stressful if they have pets when there are no pet-friendly replacement properties.
Renters also stress about losing their bond money. Both tenants and landlords should be aware that general wear and tear is not a reason to withhold bond money.
While landlords are also always seen as the ones with the power, they lose sleep too! Usually over the potential to lose money or damage being done to their investment.
A wise investor sees property as a pure business decision, but it can be hard not to feel personally abused when tenants don’t pay or trash the place, and the process of fixing the situation can be frustrating.
Unpaid rent is a big worry, as are costly maintenance issues. Paying to fix electrical faults and broken appliances is expensive enough for your own home, but imagine having one or two other homes with the same problems. It’s not fun.
Some landlords may try DIY fixes, but cost cutting and substandard workmanship can end up costing them more in the long run. Landlords should consider having a trusted home handyman or use a professional property manager. Tending to issues quickly stops small, cheap repairs becoming major, costly fixes (and keeps your tenants happy!)
Unruly renters — or tenants from hell — are another big fear of landlords, and also of neighbours. Employing a property manager who makes routine inspections can help ease these fears. They can also help prevent another landlord worry — unoccupied property — by knowing the market.
So both tenants and landlords are really in it together. Fear fuels bad property decisions among both investors and renters, so understand the worries of both sides to make better judgments that don’t leave one side running scared.
Found this article useful? Share it!