As regular readers of our Newsletter will know, we are continually monitoring demand in the rental market. I was particularly interested this week to look at our stats. Applicant demand in the first three weeks of September was at a record level. My rentals team tell me this week is proving no different. Our new listings in the first three weeks of September received between 31 and 72 enquiries, all within three hours of a property’s marketing launch. ‘Wait Lists’ of applicants had to be created, as we were unable to show that many people around each property.
The most popular properties are houses. Demand in the rental market for family homes has soared in the past 12 months. Tenants are now wanting more garden space, as well as indoor work space. With such a high level of demand, rents continue to rise across all properties. Houses, needless to say, are seeing the greatest increase, with tenants outbidding each other in some instances. According to Home.co.uk, the property search engine, the average rent for a house in Leeds is currently £1,343 pcm. Flats are averaging £982pcm.
It is not surprising rent levels are continuing to rise when looking at the supply. In the whole of the Leeds area on the day the Home.co.uk. Analysis took place, there were only 1,912 properties on the market. The population in Leeds is just over 780,000. Assuming 1% of the population is ‘on the move’ one can see there’s not a lot of property to go around!
To help tenants, we are continuing to do video tours on ALL the properties we offer to rent. This helps potential tenants ‘narrow down’ their search before booking in-person viewings. We also ask potential tenants to send us as much information about yourself, and your employment, as you can when requesting an in-person viewing. This will help us to differentiate you from the competition.
Viewing times are limited, therefore tell us why the property you want to view appears to be perfect for you after seeing the video tour. We can relay this information to the owner, especially where we may have three or four applications on the same property. It may put you ‘head and shoulders’ above the competition. We may also need information on guarantors or advance rent options if your income/credit status is borderline. We want to help you as much as possible, so please help us by having this information available as early as possible.
Landlords, this is clearly a great time to be adding further properties to your portfolio. If you have money sitting in a bank account earning no interest, invest in a property. If you need to borrow money, mortgages have never been so cheap. We’re still coming out of the pandemic and the economy is balancing itself after Brexit, yet from the rental demand we’re seeing Leeds is booming, with Headingley and north Leeds as real ‘Hot Spots’.
If you already own investment property and don’t want to expand your portfolio, this is an excellent time to reinvest to generate higher rent and a greater return. Properties which look good are attracting premium rents. Ensure your property is looking its best, structurally and decoratively. Not only will you generate a higher rent but you’ll attract quality, long term, tenants. Quality tenants are key to a successful portfolio but a successful portfolio is a ‘two-way street’; investment is needed to keep your properties running smoothly, to retain your quality tenants, and to generate continuous income.
If you are a landlord and you think your property is under-perfoprming, why not contact us and we’ll provide you with our opinion. We’re happy to have a chat, free of charge and without obligation.