The latest research from Propertymark reveals that more people are applying for tenancy renewals on their rental properties rather than move home. With rising rent and demand outstripping supply, some 73% of agents report an increase in the number of tenants who are choosing to stay put instead of move.
The rise in rent is largely attributable to the cost of living crisis which has seen increased energy costs and higher interest rates on mortgages. Landlords are then passing these costs onto their tenants making rental prices unaffordable for many, although measures such as the Renters’ Reform Bill are designed to tackle some of these pressures. As a result, many renters are deciding to remain in their current homes by renewing their tenancy agreements.
Along with affordability issues, the private rental market looks set to continue facing high demand and low inventory, all factors which will make a severe dent and keep tenants firmly in their homes. This article will look at some of the benefits of a tenancy agreement renewal for landlords, as well as tenants.
Benefits of Tenancy Renewals
Keep Good Tenants
Tenants that look after the property and pay their rent on time are not always easy to find and there is no guarantee that the next tenants will be ideal. Rather than risk problematic tenants moving into their property, landlords who already have good tenants should try to keep them by renewing their tenancy agreement.
With tenants less likely to move, it’s becoming more important to ensure that you find the most reliable tenants as a landlord. Demonstrate your commitment and increase the chances of securing a reliable long-term tenant by providing a property in pristine condition.
Security & Comfort
Tenancy renewals provide tenants with security and the comfort of knowing they do not have to find somewhere else to live for the foreseeable future. With less uncertainty, tenants also benefit from being able to lay down roots for the time being and to maintain a level of consistency in their life. This can be particularly beneficial when there are children involved as there will be minimal disruption to their routine.
Save Time & Money
Landlords incur many costs when they are searching for a new tenant. Costs such as advertising their property, maintenance and repair costs, buying new furniture and arranging viewings can easily add up. Plus, the longer the property is vacant the longer, the landlord will shoulder the burden of paying the mortgage. Having an existing tenant renew their lease will do away with many of these expenses, making it more time and cost-effective.
Tenants also save money without the need to move house, on the cost of removal, other property services and furnishing their new property. Other costs which can arise when moving include having to pay for cleaning services to ensure the property is in a fit state for its final inventory inspection. If not, tenants may also bear the cost of repairs.
One of the largest costs associated with moving to another rental property is the deposit which must be paid beforehand. This upfront cost can also place a huge financial strain on many people and can be avoided by staying put.
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