For landlords, there are a number of reasons as to why renewing a tenancy is preferable to bringing a contract to a close and then seeking another tenant.
Firstly, it’s likely that over the period of the tenancy the landlord and the tenant(s) have got to know each other and formed a mutually beneficial professional relationship. After all, Townends does always find the right tenant for you.
Unless the tenancy has gone badly for some reason, most landlords usually opt to maintain these relationships instead of starting the lettings cycle again. If something has worked well for 12 months, there’s no reason it can’t work for 24 months, right?
This option normally suits the tenant(s) too. When you think about it, the longer you stay in a house, the more it becomes a home, so tenants will usually choose to renew the contract and stay at the same property. After all, their books are on the bookshelf, it’s their toothbrush in the bathroom cabinet, and their Frozen 2 duvet cover on the bed. From a tenants’ perspective, although they’re paying rent, for them it’ll feel just like home and most won’t want to leave in a hurry to start the property searching and viewings processes all over again.
So, what does this mean?
Essentially, this makes renewals a really important part of the tenancy. If the statistics say that both parties usually do opt for renewing, then it makes sense that this has to be beneficial for the landlord and tenant alike.
This is where Townends can help you. With over 25 years’ experience in letting houses and apartments all over London and Surrey, we’ve accumulated the expertise necessary to make the letting and renewals processes completely stress-free for any landlord.
By allowing our highly skilled Renewals Consultants to manage the whole process for you, you won’t have anything to worry about!
To raise or not to raise – that is the question
Tenancy renewals are the best time to tackle the potentially contentious issue of raising the rent. The renewal is a time when the landlord and the tenants can come together and resolve any outstanding issues as well as addressing the repairs and improvements that the property has undergone over the tenancy, but also taking into account the rising costs of living.
When it comes to increasing the rent, there are, of course, pros and cons to doing so. It’s not a decision to take lightly.
One of the clear advantages of increasing the rent is that it simply puts more money in your pocket. For example, even a small raise of £25 a month will put an extra £300 in your pocket each year. If you have several properties in your portfolio, they can all add up to be quite a substantial amount.
Another reason why you may wish to consider raising the rent is to stay in line with a rising market. In London, it’s likely that your property is in a rapidly increasing rental market and it makes sense to increase the rent to keep up with the market comparables. Your tenant will have to accept an increase in rent if everywhere else has increased at the same rate.
However, before you rush off to find a calculator to find out how much more income you could make, there are other factors to consider.
For some tenants, it’s merely about the principle of paying higher rent and if your tenant has looked after your home well and you would like to keep them in the premises, be sure to consider the likelihood of them leaving before sending them notice of a rise in rent.
Logically, the most sensible time to increase the rent, is during the lease renewal period. This will avoid springing any surprises on the tenant and the most likely way that any increase will be accepted in good grace.
At Townends, our dedicated Renewals Consultants are experts in contract renegotiation and can manage all the renewal documentation involved, making what can be quite a stressful procedure for independent landlords, simply a breeze for Townends landlords.
You can’t complain about compliance!
If you’re a landlord, keeping your property compliant is, admittedly, a headache. Laws and regulations change quite frequently and although the lettings market in the United Kingdom is well regulated, the flip side of that coin means that there are many things you have to stay on top of.
Firstly, and most importantly, landlords must always remain compliant with safety regulations. The Housing Act 2004 and the Regulatory Reform (Fire Safety) Order 2005 establish everything that landlords need to know. Most of the compliance regulations are common sense, but it is the landlord’s responsibility to make sure that the property is safe from a fire standpoint.
In England, the Smoke and Carbon Monoxide Alarm Regulations 2015 also demand a smoke alarm on every floor, in addition to carbon monoxide alarms wherever there may be solid fuel.
One of the most important pieces of law to be aware of pertains to gas safety. Poorly maintained gas supplies and gas appliances can be extremely dangerous, and it is your obligation to ensure that the tenants are always safe. Landlords also have a duty of care by obtaining a Gas safety certificate (CP12) every 12 months.
The Electrical Equipment (Safety) Regulations 1994 don’t require a certificate as with gas safety, but there are nonetheless a variety of elements to it that landlords must be aware of. This covers both appliances that might be in the property, as well as the electrical fittings.
Got your head around all that? There’s more. As strange as it sounds in an ever-globalised world, landlords aren’t able to rent a property to absolutely anyone. Under immigration rules, specifically the Immigration Act 2015, landlords must ensure that the person they are planning to rent to is either a British, EEA or Swiss citizen, or that they have the ‘Right to Rent’ under other circumstances.
Last but not least, something that has kept tenants sweating at the end of their tenancies generation after generation. For a long time, issues over deposits have caused considerable friction between landlords, who had the power to withhold them, and tenants, who nervously anticipated the full return of what they had paid upon signing the contract. The government aimed to resolve this by introducing the Deposit Protection Scheme, which means that deposits must be held by a third party, with all disputes being resolved via this route too.
So as you can see, when it comes to renegotiating a tenancy contract, considering raising the rent, or simply just staying legal from a compliance perspective, it’s not as though you can simply jot down five or six bullet points on a post-it note ‘to-do’ list, stick it on the fridge, and then forget about it. The tenancy renewals process and property compliance in general are detailed procedures to consider, and you must be certain to get the minutiae exactly right to avoid severe penalties.
What’s the good news, we hear you ask?
The good news is that Townends covers every base from beginning to end, and each one of our separate teams will take care of you along every step of the way. From Property Consultants to Move-in assistants, from knowledgeable Compliance experts to the Renewals and Re-lets Team, whichever stage you’re at with letting your property, we’re there to take away the hassle, making renting out your residence with Townends a completely stress-free occupation.