Updating post from Reddit.
Landlords are being warned about a rise in tenants who rent properties only briefly (“stopover tenants”). Shorter tenancies mean increased turnover costs, empty periods, and wear issues. The shift is driven by economic and lifestyle factors. Mitigation strategies include incentivising longer stays, better tenant screening, and flexible leasing terms that protect landlords.
I’ve not seen this. Where does your information come from?
It seems odd, as my experience is that rent demand has skyrocketed that whenever one of my properties come up it’s often got a new tenant lined up before the old ones have even left.
The cost to list a property has also dropped dramatically. When I first became a LL it was often hundreds now it’s like £20 or something.
OP, where does your data come from?
Probably concerns regarding the renters rights bill which when passed into law (probably this year but maybe early next) will mean no minimum term on a tenancy.
This isn’t what I have experienced in practice.
Thankfully no tenant has ever just walked out on me and having acted for landlords for many decades I can say in my experience both professional and personally that although phantom tenants do exist they are very much the minority.
Most tenants when vacating take weeks or months; they’ve got their own lives and rarely will anyone just up and vanish completely.
I’m confident I could get a new tenant for any of my properties within 4 days. Ideally 1-2 weeks if I were to be picky.
I’m rather excited for the RRB. It’ll hopefully help clean up the industries reputation, weed out the bad eggs on each side and generally lead to a boost to the industry.
Whilst it's very optimistic, I'd guess you're a portfolio landlord?
For smaller time landlords it's an absolute nightmare what it's becoming compared to before. I have no issues with regs, but it's quickly becoming bureaucratic for bure aucracies sake. RRB only feels like it's going to add to that nightmare due to the issues around evictions.
Yes I am a portfolio LL.
I feel most good LLs, small or large, will not see any practical changes from the new legislation. At least not on the day to day; we will all naturally bemoan if we’re caught out like we all bemoan the local speed camera when we’re caught but are a fan when it slows down local traffic the rest of the time.
Those who will be practically affected are what I would consider to be hobbyist LLs. Those with no real background in property and simply see it as a get rich quick scheme. I feel there is an argument to be had that no true amateur LL should exist when it’s peoples homes which are in the balance. We’ve all seen the horror stories, in the last few days alone I’ve noticed articles about LLs changing locks, offering to forgo rent for adult favours, unsafe living conditions, moving in their own parents etc.
Case in point, I had a friend recently buy a rental property. He’d seen what I was doing and thought he could do that too. He borrowed from the in-laws and spent hundreds of thousands on purchasing a property and literal years renovating it. Turns out, he made no money from the renovations (the property was revalued £5k higher than he’d brought it after spending £60k on it) and then he was on the war path to make his money from the tenant if he couldn’t make it from the house price increase.
He struggled a lot finding the right tenant and now his first tenant is moving out after the first year (there had been some spats between them both). He’s eager to see 8% ROI from the rent alone which isn’t going to happen with this LTV.
On reflection, his amateur attempt had meant the housing market has been pumped higher (he brought a property above market value), there’s another house out there with DIY LL marked all over it, a tenant now needs to uproot his family to move elsewhere due to concerns over the reliability of the property because of an odd inexperienced LL and now some other poor tenant is going to be squeezed so that the LL can try and make his own figures make sense.
Sure I see your point.
On the flip side, we both know that the day to day isn't where the money is truly made or lost.
Whilst it appreciate anecdotal isn't the most reliable, so take my story with a pinch of salt, I was burned early on.
My first "arms length tenant" (actual first was an old friend. Less said about that the better) turned out to be a nightmare. Over the first year, their issues slowly became apparent, and suffice to say I was a few grand out of pocket when they left and found out that they had been involved in making some sort of adult content.
They ultimately went on to harass and threaten me over the course of a month or two and ultimately resorted to trying to guilt me by making "family" ring me.
This was when I used a s21 to avoid having to say "you have trashed the property".
How do you think that eviction would have gone if I needed to cite a reason?
I agree there are some rogue landlords. The obvious question though, is what is the issue? Is it a lack of rules, or a lack of enforcement?
Adding rules won't affect rogue landlords. Adding enforcement will.
What would the flexible leasing terms involve?
I guess that was me last time I rented, 5 months. Not hard to find tenants though.
Lower the cost. People will stay for longer.
My default as a tenant was always to find a new property as soon as the landlord tried to raise the rent.
How are you proposing to "inventivize" a longer tenancy?
With the renters rights Bill, you can do this all you want, but they'll still be free to leave with 2 months notice as I understand it.
So do not give any furniture especially beds, no white goods at all.
Make sure utilities/council tax are informed that your new tenant moves in xyz date.
Make it so it will be quite the kerfuffle to stay only a couple months.