Reliable renters are more valuable to landlords than additional money, a survey has revealed.
According to research by Leeds Building Society, 61% of landlords would be willing to postpone rent rises or offer properties below the market value in order to secure tenants who are dependable and pay on time.
Factors such as Brexit, economic uncertainty and the increasing supply of rental properties were cited by landlords as their reasons for good quality tenants being even more valuable.
And 66% of those surveyed who were renting at below the market rate said they would sacrifice as much as £100 for a reliable renter. Some even said they would accept a reduction of between £100 and £200 a month.
Incentive to invest in quality properties
Jaedon Green, director of product and distribution at Leeds Building Society, said the impact of Brexit and ongoing economic uncertainty on tenant demand suggested landlords were actively seeking to retain and/or secure reliable tenants.
He said: “The commercial rationale for landlords to invest in the quality of their rental property has never been stronger.
“Quality properties typically result in higher tenant satisfaction which results in fewer voids and improved rental yields over the longer term.”
Good news for tenants
And he added: “This is positive news for tenants. The negotiating position for reliable tenants is strengthening as landlords are actively taking steps to maintain the security of regular payments from dependable tenants, even if that means reducing their monthly incomings slightly.”
Leeds said it had introduced an Easy Start Up BTL mortgage which provided the opportunity to pay nothing for the first three months, while preparing the property to let.
A new initiative launched by Equifax which means rental payment data will appear on the credit reports of more than 1.2 million tenants will create even more incentives for renters to demonstrate their reliability.
By paying on time each month they will be boosting their credit report and therefore increasing their chances of getting a mortgage eventually.
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