Reading the property news recently you would see that the rental market generally is enjoying some rather pleasant conditions – and this is especially true in Shepherds Bush where the renting climate is set fair with blue skies. To illustrate this we know that:
· There are lots of professional couples who are now paying £350pw for 2 bed properties, where they were previously paying £300pw for a one bed - so they are clearly budgeting to make sure they can afford the jump.
· There are more people who are looking to share and it is very healthy, for a rather apt example - as Shepherds Bush has a number of hospitals - doctors and staff are ‘keen’ to pay £350pw for the same property rather than £325 they were due to the shortage of supply over demand.
· There is a general lack of good quality, 3-4 bed accommodation for professional sharers, so if landlords have these they could fill them straight away.
In respect of landlords, we know that although there are those who have just the one property are deciding to sell and capitalise on the property prices, the majority are holding on to what they have and are adding to their portfolio and - furthermore - are taking the decision to modernise, as they’re increasingly aware that tenants expectations are becoming higher and that they want better standards of décor, facilities and wood flooring/carpets etc.
This policy does reap rewards, as tenants are content to pay more rent for improved conditions or, if already renting, accept a fair increase if the property is in good order or has been improved – and if they are ‘trouble free’ renters it is certainly worth keeping them happy, rather than make a larger rent increase and see them up sticks and go elsewhere. More substantial rent increases should only really be made if the property is empty and you are looking to fill it.
Making improvements to kitchens, bathrooms, windows and boilers et al to make them money efficient is certainly worth it but the money outlaid has to be appropriate to the property and rent expected. To this end we would very much welcome landlords asking us about what they intend to do before embarking on any project and we will provide a free valuation and opinion, as you really don’t want to be spending a lot more on the improvements than you need to, do you?