In recent times, the clamour surrounding rising rents has been hard to ignore. Ards and North Down recently earned a runner-up spot in Propertypal's list of top places in Northern Ireland for rental price growth in the last quarter, with average rents soaring to £828 per month. While this may seem crystal clear for new rentals, the scenario becomes murkier when you're dealing with existing tenancies.
Often, letting agents tend to handle their existing property portfolio differently from new business. When onboarding a new client, it's common practice to engage with the manager and establish rental rates based on recent comparable transactions. However, when it comes to renewals, the dynamics change. Property managers, with an eye on preserving year-on-year tenancies, often come into play.
The typical approach in such cases is to increase rents in increments of £25, in line with the Retail Price Index (RPI), which has remained below 3% for most of the last decade. This pattern can persist year after year, potentially causing significant rental disparities. In some instances, properties are even re-marketed at these lower rates. Landlords may have inadvertently settled into a complacent mindset, setting their expectations lower, especially if they are overseas and out of touch with Northern Ireland's property trends.
Certainly, there is value in retaining good, long-term tenants who care for your investment. However, even the most excellent tenants find themselves bearing the brunt of escalating prices in this unbalanced market, often opting to stay put due to limited alternatives. Notably, void periods are at an all-time low, reducing the disincentive to negotiate rent increases. For properties where rents haven't seen adjustments in several years, particularly in high-demand segments of the market, substantial monthly uplifts of up to £300 are not uncommon.
At Pinkertons, we approach rent renewals with a different perspective. We consider the latest market data and ensure that if your property is up for re-letting, it is listed at the most competitive price achievable—not just at the rate your previous tenant paid.
In this evolving rental landscape, it's crucial for both landlords and tenants to stay informed and make decisions that align with their long-term goals. For more insights into the rental market or personalised guidance, feel free to reach out to Colin Dill, our Senior Tenancy Manager, at colin.dill@pinkertonsni.com.
Navigating the rental market is an intricate process, but with the right knowledge and approach, it can be a win-win situation for both landlords and tenants alike.
Often, letting agents tend to handle their existing property portfolio differently from new business. When onboarding a new client, it's common practice to engage with the manager and establish rental rates based on recent comparable transactions. However, when it comes to renewals, the dynamics change. Property managers, with an eye on preserving year-on-year tenancies, often come into play.
The typical approach in such cases is to increase rents in increments of £25, in line with the Retail Price Index (RPI), which has remained below 3% for most of the last decade. This pattern can persist year after year, potentially causing significant rental disparities. In some instances, properties are even re-marketed at these lower rates. Landlords may have inadvertently settled into a complacent mindset, setting their expectations lower, especially if they are overseas and out of touch with Northern Ireland's property trends.
Certainly, there is value in retaining good, long-term tenants who care for your investment. However, even the most excellent tenants find themselves bearing the brunt of escalating prices in this unbalanced market, often opting to stay put due to limited alternatives. Notably, void periods are at an all-time low, reducing the disincentive to negotiate rent increases. For properties where rents haven't seen adjustments in several years, particularly in high-demand segments of the market, substantial monthly uplifts of up to £300 are not uncommon.
At Pinkertons, we approach rent renewals with a different perspective. We consider the latest market data and ensure that if your property is up for re-letting, it is listed at the most competitive price achievable—not just at the rate your previous tenant paid.
In this evolving rental landscape, it's crucial for both landlords and tenants to stay informed and make decisions that align with their long-term goals. For more insights into the rental market or personalised guidance, feel free to reach out to Colin Dill, our Senior Tenancy Manager, at colin.dill@pinkertonsni.com.
Navigating the rental market is an intricate process, but with the right knowledge and approach, it can be a win-win situation for both landlords and tenants alike.
