Assetz® News - 2 Million Tenancies have no problems each year despite some going wrong

2 Million Tenancies have no problems each year despite some going wrong

4th May 2005 |

2 Million Tenancies have no problems each year despite some going wrong. 'Tenant horror stories' may attract a lot of attention, but the majority of buy-to-lets work well for all parties

Overflowing bath tubs, persistent complaints from the neighbours about noise, damage to the fixtures and fittings of the property may make being a landlord seem like one big headache after another. New figures from the National Landlords Association show that ‘problem tenancies’ are very much the exception rather than the rule.

The problems are few and far between…

The NLA’s chairman David Salusbury comments: “Out of around just over 2 million private tenancies in the country as a whole, we calculate that the number that encounter major problems represents a very small percentage, of less than 5%. Even so, with such a large number of private rentals in this country, this still accounts for a significant number of problem tenancies in absolute terms. But don’t forget that, despite some tenancies that go seriously wrong, around 2 million go swimmingly.”

See attached release for charts

“At the same time, I wouldn’t like to under-play the problems that can arise. Over a third of our landlords report that they have had to resort to the courts to evict a tenant, but thankfully it’s not an everyday occurrence. It’s once in a blue moon that things go as badly wrong as that.”

Communication and respect is key

The success of most private rentals may be attributed to the responsive and responsible attitude of the majority of landlords and tenants. Continues David Salusbury: “It’s in the best interests of both landlord and tenant to make things work. Mutual respect, good communication and attention to detail go a long way towards setting the relationship on a good footing.”

The NLA believes that landlords can do a lot to set the right tone and make the tenant feel valued as a customer, providing them with a list of ‘Ten Top Tips’ for success as a landlord.

“A lot of it comes down to working effectively with tenants, to understand their concerns and take steps to address them,” continues David Salusbury. “Our member landlords report that by being proactive in addressing and resolving problems and issues, tenants are more likely to look after the property, pay their rent on time, and stay for longer. In fact, there is plenty of evidence that by maintaining the premises to a higher standard, tenants are more scrupulous in terms of how they treat the property. Scrimping and saving on maintenance is detrimental to the fabric of the property, and detrimental to good relations with the people who are living there.”

Indeed, the latest English House Condition Survey indicates that the quality of rented homes in this country is higher than ever before, with 52.5% officially categorised as ‘decent’.

The NLA’s Ten Top Tips on how to be a successful landlord

1. Treat tenants as clients, ask them what they think and stay in touch with them

2. Deal promptly and sympathetically with tenants' concerns

3. Make yourself aware of relevant regulation, law and taxation

4. Keep detailed records

5. Devise a maintenance programme and stick to it

6. Keep a pair of rubber gloves handy

7. Whenever possible, take and check references

8. Do a little often rather a lot infrequently

9. Ask for a little below market rent rather than a little above

10. Join a landlord association!

Don’t forget the rubber gloves…
The Ten Tips highlight the fact that being a successful landlord is a really hands-on job. “For most of our members, being a landlord is their only or main occupation, while most of the others devote a considerable amount of time to the business,” continues David Salusbury. “If something goes wrong in the property, tenants expect to be able to contact the owner or his agent to get it fixed. A broken-down boiler when the temperature is sub-zero, a blocked drain, or water running through the ceiling may lead to a panic phone call at an anti-social hour. Landlords need to be willing and able to respond to problems of that nature, and keep that pair of rubber gloves handy to deal with those not-so-pleasant jobs!”

When it comes to rent, David Salusbury believes that landlords should beware of appearing greedy. “A little below the market rate rather than a little above it means the tenant feels he or she is getting a fair deal, so they are likely to stay for longer and look after the property better. Getting a few percent less is better in the long run if the tenants stay for longer, renew the tenancy and you minimise the risk of voids.”

For all the scare stories, landlords’ experience is that the bulk of tenants are responsible and look after the homes they rent.

However, there is much the government could do to create the really healthy private rented sector it says it wants.

For instance, if landlord and tenant aren’t able to sort out their differences satisfactorily through discussion, as things stand recourse to the courts for possession can be cumbersome and expensive. We’d like to see something much quicker, fairer to both parties and more straightforward. We also need much less regulation of the sector and it needs to be applied with a light rein”.

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