With complications relating to COVID-19, it’s more important than ever for landlords to look after good tenants and encourage them to remain in their rental property and renew their tenancy. Mount & Minster letting agents advise on how to negotiate a tenancy renewal that works for both landlord and tenant.

The ideal time to contact your tenants is around 12-16 weeks before the end of the fixed term. This should be done in writing explaining you're happy with their occupation and you’d like them to stay in the property. The key here is to give yourself the time that's needed to agree terms while knowing well in advance if you need to prepare to remarket the property and find new tenants.

As a landlord, there are two key variables one should consider when negotiating a renewal: pricing and length of tenancy.

1. Pricing

It’s essential you listen to the advice of your letting agent and understand your property’s value in the current local market. A good agent will know whether the market may have changed significantly since the tenants commenced their tenancy, particularly during the current climate.

Other reasons why the market may have changed, include:

Timing: 
Seasonal markets can differ. For instance, if you enter a contract in December and the fixed term ends 18 months later in June then demand for property, and thus rental asking prices, is likely to be significantly higher as the summer months have been known to be the peak rental season.

Local area: 
Developments in the local area may have increased or decreased its desirability - for instance, the introduction of new transport links.

Once you have determined what is a reasonable price, you need to consider expenses and cash flow. If a tenancy agreement is renewed you will avoid marketing fees from your agent, as well as void periods where you remain liable for bills, council tax, and mortgage payments without any rental income. It is worth taking this into account when considering pricing with your current renters.

Whilst the current economy faces challenges, it’s important to bear in mind that the residential lettings market is quieter and many renters are struggling to afford what they could pre-Covid. This means there is less demand in the market and many renters are looking to downsize or reduce their rent. When negotiating a renewal, offering slightly lower rent could see you better off in the long term than if you attempt to remarket.

2. Contract Length

Your agent should seek to structure your renewed rental contract to allow the property to return to the market when you would enjoy maximum pricing leverage. The best time to end a contract is generally in the June to September peak period for lettings, but this will vary between type and location of property.

Throughout the entire process, it’s important to remember that you and your renters are working towards the same goal: they want to live at your property and you want to keep them there.

For further details as how best to maximise your rental investment, please contact James Ward on 01522 716204.

Believe it or not, Christmas is less than 100 days away. For those looking to be in their new home before the holiday season, the clock is ticking. As a result of restrictions relating to Covid-19, the pressure is on in these uncertain times, with no guarantee that buyers will be in their new homes by 22 December, the last day for completions.

We have compiled a list of tips for those aiming to be moved in good time:

1. Get your home ready for marketing

Smarten up your home and get it ship-shape. Declutter and redecorate if necessary, making your property more appealing to a prospective buyer. Take advice from a good, local and reputable estate agent. Remember, they're there to help you throughout the process so ask as many questions as you need to, they're there to hold your hand from start to finish. Use their expertise to help you find a property you want to buy as well, they'll probably know of properties coming onto the market before 'Joe Public'.

2. Solicitors

Due to the huge increase in enquiries and the current 'mini-boom', the increase in activity and changes to usual proceedings has resulted in the time from having your sale/purchase agreed and actually getting the keys longer than usual. Never before has it been so important to have a competent solicitor to keep everything efficient and easy. Speak to your estate agent as they deal with solicitors multiple times every day. They'll be able to recommend a good one who they've had suitably positive experiences with.

3. Book a surveyor ASAP

Once you have agreed the price on a property you wish to buy, you can either have the surveyor acting for your mortgage company go and have a look at it, or upgrade to a Home Buyers Report (link here). It will give you piece of mind all help iron out any defects before you move in before Christmas.

4. Packing & removals

If you are packing yourselves, it is best to start at least three weeks before the completion date, so start with those items you won't be using during that period. This will make the process less stressful. If you're  using a removals company, try and book as early as possible to ensure the company is operating at the time you require. Many removals companies have had to change policies and processes in line with Covid-19 guidelines, so ensure you prepare in advance, again reducing stress and unknowns.

5. Don't forget little ones!

Both pets and young children can find moving home difficult. Enquire if family or friends can look after children on moving day so that they do not get anxious about the moving process and leaving their old home, this way they won’t feel unsettled and can just enjoy the excitement of arriving at their new home.

For expert advice as to how to successfully sell your home within a suitable timeframe, get in touch with Mount & Minster on 01522 716204 or 01476 515329.

Cast your minds back to 2008. Just a few years ago, after the boom that started from 2005, the property market came to an almighty halt, prices came tumbling down and the crash had taken it's grip. Now, with COVID-19 and lockdown having taken it's toll on the UK economy, we are once again in a recession. Why, then, is the property market proving so buoyant and homes selling so quickly? Simple...

Assessing previous recessions, a common characteristic before a crash is a long boom. We hadn't experienced a long or significant uplift in the market before Corona hit, so all indications suggest we were not due a downturn.

To compliment this slow house price growth we've witnessed in recent years, we are also blessed not to have fallen into the same trap that triggered the last crash, borrowing. We currently benefit from tougher and more responsible mortgage regulations whereby negative equity is less sensitive or, indeed, likely.

The next factor that one should consider is the fact that, although we're officially in a recession (two consecutive quarters of negative GDP growth) we've only got September left of the third and current quarter. In this current quarter we've gone back to work. GDP is most likely to have increased, in which case, the recession is likely to be already over!

The basis of this 'mini-boom' is good old fashioned economics. Demand is out-stripping supply. This is changing as more and more sellers are taking notice of the boom and getting their properties on the market. It's a race against time, therefore, for sellers to take advantage as more and more options are being made available to buyers with more properties coming onto the market. Sellers are increasingly suffering from increased competition, but as long as the demand is still there they can milk the opportunities.

The last factor... Brexit. The barriers to market (psychological) have been lifted as we have more clarity as to what's happening and the government's plan of action. This increase in confidence has meant that buyers and sellers that were previously waiting in the wings are now progressing with their home-move plans.

It's busy out there in the property market, and certainly buyers and sellers are all making hay. With the increase in unemployment and furlough schemes now being eased and brought to a close, it's fair to say that the pool of purchasers will soon dwindle and supply will shortly catch-up with demand, possibly even exceed it, pushing prices down. As we go into September, the sun will still be shining, so our advice to those thinking of selling is make hay now.

Our predictions are that the market will not crash, but certainly there's opportunity out there at this present time and the early signs of things changing are starting to show. It's not too late!

If you wish to take advantage of the current 'mini-boom', please contact us on either 01522 716 204 or 01476 515329 and we'd be delighted to offer you a free consultation and valuation.