The Tenant Fees Ban has disrupted the way many landlords operate, and some landlords have lost up to 20% of their annual revenue because of the ban. Even though a more significant proportion of the population is renting property, it can be difficult for landlords to generate income, and enjoy the return they would like to make.
With a reduction in the fees landlords can charge, such as not being able to charge a tenant for the vetting process, landlords need to think about what creates value for them. It is still vital to vet tenants because failing to do so can lead to significant problems and higher expenses in the long-run.
Landlords can still generate additional fees
There are still ways landlords can generate additional income from tenants while complying with the Tenant Fees Ban. An attractive option that has been the topic of much debate in recent months is the matter of Pet Rental Fees. With security deposits capped, many landlords decided it was no longer viable to let to tenants with pets. Before the introduction of the Tenant Fees Ban, landlords could charge these tenants a higher security deposit, cover the cost of any damage. However, when that option was removed, some landlords who were previously happy to let to tenants with pets decided this was no longer a suitable option for them.
However, there have been reports of landlords listing two rental fees for their property. One price for tenants without pets, and a higher monthly rental fee for tenants with pets. Not everyone is happy with this, and some have questioned the validity of the approach. However, ARLA Propertymark has voiced their support for this approach, and landlords are free to let their property in this manner.
Tenants want a rental property which fits their lifestyle
It is clear some tenants with pets are happy to pay a higher rental fee to ensure they can continue living with their pet. A study this year by Vaboo, an organisation which supports letting agents, found 70% of tenants would be happy to pay additional rent for certain services. Some of the features respondents said they would be glad to pay more for include:
- Having the chance to save money on household bills
- Having access to a communal space
- Having access to a workspace
- Having access to a swimming pool
Some of the features will be reflected in a higher rental fee, but there is scope for landlords offering additional services without compromising their position on the Tenant Fees Ban. Providing high-speed broadband at an additional price, guaranteed parking as another service and parcel collection services are all ways landlords can provide tenants with a better standard of service, helping them to generate further income.
“At Thomas Morris, we know the Tenant Fees Act has caused problems for many landlords”, said Thomas Morris St Ives Branch Manager Katy Poore. “We believe it is possible to provide a high standard of service, and receive the income this service merits. If you need assistance in managing tenants and your rental property, please get in touch.”
Letting property is stressful, but with the right support, you can make the process easier. Book a valuation at a time that is suitable to you or alternatively, you can phone our St Ives branch, managed by Katy Poore by calling us on 01480 468066.