With the rental market acting like a veritable rollercoaster at the moment, landlords should always be prepared for sudden dips. Recently, property rents have been relatively stable and increasing in most areas, but in January 2011 average rental yield fell for the first time in 12 months, according to a new report.
Declining property rents are due to a number of factors, as with rises. Increases in rent arrears, combined with a slight fall in house prices has had a knock on effect on rental incomes in the UK at the start of the New Year. As a landlord, it is at times like these that you should seek to protect your income, to avoid falling foul of any market dips.
If you do have to decrease the rent on any of your properties, it will become even more important to ensure that your tenants do not fall into arrears. Making sure that your property or portfolio is looked after by an experienced Letting Agent is a great step – they can do all of the chase work for you, making sure that references are collected, the right tenants are selected, and that deposits and direct debits are all set up for you.
Using a Letting Agent to manage your property for rent can relieve some of the stress faced by the residential landlord, giving an added level of security to your tenancies during difficult financial times. Hopefully this new report is just a slight hiccup on what has recently been a smooth ride for landlords, and that 2011 will only get better from here on in!