A growing number of young professionals in Britain are opting to rent instead of buy their first property. Ten years ago most young professionals had little trouble getting into the housing market, however today it is almost impossible for them to do so. As more and more people look to make their first home in rented properties, they are also looking to landlords to create longer tenancy agreements so that their residence feels more permanent and there is less chance of landlords being able to remove tenants once a twelve month contract is up.
This sounds like good news for landlords; the fact that tenants want longer contracts means that landlords will have more security over their rental income. However, before agreeing to longer tenancy agreements, it is important for landlords to consider the implications. It has been argued that landlords will have to include new clauses in contracts that are over twelve months that agree on subjects such as how the property will be maintained. Some landlords are debating including clauses that means the tenants must carry out work on the property themselves every twelve months if they wish to stay longer. Others are considering how to include rent increases into their contracts, especially as the housing market is prone to fluctuate yearly.
With all this in mind it will be even more important in the future for landlords to have adequate landlord insurance that covers long term tenancies. Tenancies that are longer term will ultimately lead to more general wear and tear on the property, so it may be appropriate to increase the rent deposit to six weeks. Furthermore, it has been advised that those looking for long term tenancies should be subjected to a rigorous background check, including information on their employment history in order to make sure that they are financially stable.
As always, it is important for landlords to understand and cater to the demands of the market; however it is firstly more important to understand how these changes will affect them, their contracts, and their insurance policies.