9165 - BM Outlook 2022 R6 - Flipbook - Page 41
With demand remaining high for
rental properties across the region,
landlords need to take advantage of
professional support to attract good,
long-term tenants.
Those tenants, while plentiful, are
increasingly keen on making sure they
are moving into a tidy, well-maintained
and comfortable home, and with gas and
electricity costs soaring, most have energy
efficiency at the top of their wish list.
“It’s important to stress that it’s not just
about the money but about the right
tenant,” explained Batcheller Monkhouse’s
Head of Lettings Clare Sheffield. “A
properly presented property will not just
attract a higher rent but a tenant who is
more likely to look after the property, pay
on time and stay for longer.
“A professional letting agent can not just
help a landlord find good tenants but can
also advise on the best way of presenting
the property to best advantage and
making sure the important details are
right. Tidy decoration, a modern kitchen
and bathroom and a generally wellmaintained property inside and out will all
help. Our job is to advise on presentation
at the appraisal stage.”
38 | Outlook
Clare Sheffield
The rewards for getting it right are clear.
The average rental in the South East
is currently £1,169 per month, which
represents a year-on-year rise of 4.8%,
about twice the usual annual rise.
Increased rental values represent a
reduction in supply, caused in part by
what Clare referred to as a drop in the
number of “accidental landlords” who had
temporarily rented out property during the
sales market slump a few years ago but
have since taken advantage of the Stamp
Duty holiday in 2020/2021 and sold on a
rising market.
That shake-out has left mainly
professional landlords who are now
benefitting from a favourable demand and
supply equation but still, in Clare’s view,
“need to make good use of professional
advice to take full advantage of the
opportunity on offer in the rental market.”
At one point, rental properties were in
such demand that they were attracting
offers above the asking price, highlighting
a shortage of homes that is unlikely to
be improved by the increasingly onerous
demands placed on landlords by evertightening Energy Performance Certificate
(EPC) legislation.
Partner,
Head of Lettings
While the legislation itself is “at best
confusing”, according to Clare, the principles
behind it are sound and reflect what tenants
are looking for in a time of rising energy
costs. “A good EPC rating is vital as it
shows that the property is well insulated
and will cost less to heat,” Clare said.
“From the landlord’s point of view it can
be used to justify a higher rental charge.”
“As well as marketing the property, dealing
with maintenance issues during the rental
period and supervising the end of the
tenancy, we can also project manage
any improvements the landlord wants to
undertake between tenancies. In short,
we can take care of every part of the
agreement so that the landlord just enjoys
the benefits of his or her investment.”
And although the EPC legislation is
complex and likely to push some landlords
out of the rental market altogether,
Batcheller Monkhouse can help property
owners negotiate its many twists and turns
and can advise on smaller, less intrusive
measures to boost a property’s rating. “We
can also help spread the costs by setting
out a schedule of work that will allow the
landlord to meet the right standard by the
deadline of 2025,” said Clare.
Where Batcheller Monkhouse acts on a
letting only basis, rather than as managing
agent, it can also carry out rental reviews.
“Some landlords, particularly in rural
areas, think they are being helpful by not
raising rents annually, but in the longer
term that does the tenant no favours as
they suddenly find themselves facing a big
increase a few years down the line,” said
Clare. “A nominal annual increase based on
professional advice is better for both sides.”
Talk to Batcheller Monkhouse about:
As a managing agent, Batcheller
Monkhouse acts as a go-between for the
landlord and tenant, and can deal with any
issues that arise. “Clearly we act for the
landlord, but we also work hard to make
sure the tenants are happy and comfortable
in their home, as that’s important for the
ongoing relationship,” said Clare.
Demand remains high, which makes
letting a property an attractive option for
new entrants to the market. “We also have
plenty of applicants looking for new rental
homes so now may well be the time to talk
to Batcheller Monkhouse about renting out
property,” Clare concluded.
• Annual rent reviews
Are you making the most
of your assets?
Demand is high for good quality
rental property, but potential tenants
are raising the bar. They want energy
efficient, well-maintained homes, for
which they will pay a fair rent.
• Low-cost improvements aimed at
maximising rental levels
• Meeting EPC requirements by 2025
• Meeting the challenge of future
bans on fossil fuels
• Finding the right tenants
• Entering the rental market
EPC proposed changes
The Minimum Energy Performance of Buildings Bill
is currently in the early stages of its journey through
parliament. If approved, all new tenancies in the
private rented sector will need an EPC of Band C
or higher by 31 December 2025, while all existing
tenancies must be Band C from 31 December 2028.
This should be done where practical, cost-effective
and affordable. Owner-occupied properties will be
required to have an EPC of C by 2035.
This is a significant jump from the current
requirements of an EPC Band E in the private
rented sector, and landlords with large portfolios
are encouraged to plan well in advance to spread the
potential cost of energy improvement over several years
or register for an exemption if applicable.
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