Being a landlord is a challenging process. There are many things for Camberwell landlords to keep up with, but changing regulations places landlords under considerable pressure. The introduction of the Tenant Fees Act in 2019 caused many landlords to change their practices.
If you are worried about what fees you can charge, you are not alone. The regulation has brought about several changes, and the cap on security deposits has dramatically influenced who landlords are happy to let property to.
Some landlords are selective about which tenants they let to
Not every landlord is happy to let to tenants with pets. There is an added cost associated with letting to pets, but for some landlords, a higher security deposit provided them with the confidence to allow these tenants to stay in their home. Now that landlords cannot charge a higher security deposit, the number of landlords happy to let to tenants with pets has fallen.
Understandably, this has been a hot topic in the rental market, and it turns out there is a way for landlords to meet the needs of these tenants, without being out of pocket. A solution of sorts is found in landlords advertising the rental property with two rental fees.
One rental fee is for tenants who don’t have a pet, and this is the lower of the two prices. The higher cost is for tenants who wish to let the property with a pet. The additional fees provide landlords with the confidence they can maintain the condition of the property, and tenants are delighted they can live with their pet. Therefore, everyone is happy with this outcome, and it is fair to say there are services tenants are glad to pay a higher fee for.
Some tenants want to pay money to receive services
A recent study of tenants and what they would be happy to pay for indicated 32% of respondents would be happy to pay more to allow their pet to stay with them. Other services that tenants are happy to pay additional fees for include:
· High-speed broadband, with 31% of respondents saying they would pay more
· Guaranteed parking at the rental property
· Garden space at the rental property
· Satellite or Cable TV at the rental property
· Parcel collection or an on-site dropbox
These aren’t services which every tenant needs, and they may not be available at every rental property. However, if this service can be arranged, but it doesn’t form part of the basic rental package, it may be possible for landlords to offer this service as an additional service.
Following the approach taken by landlords who let property to tenants, a rental property with parking space may have two prices. Not every tenant has a car, so some will prefer to pay a lower fee and not have a car parking space while tenants with a vehicle will appreciate the chance to have a guaranteed safe space for their vehicle.
If you are a Camberwell landlord looking to provide a better service to tenants, while generating income, contact us today. We are pleased to say we have helped many Camberwell landlords, and we look forward to assisting you.