Whether you are new to the
world of lettings or you have been a landlord for many years, in 2021, the
buy-to-let sector is more trickly to navigate than ever before. With the whole
world adjusting to living in a post-pandemic world, the task of both attracting
and retaining tenants will be no easy feat.
If you are worried about the financial implications of COVID-19 on your lettings business or you, simply want to make sure that you can operate safely in the year ahead, keep reading to discover the top five things that all landlords need to know in 2021.
1. Social distancing is here to stay
Social distancing
measures do not look like they will go away anytime soon, so as a landlord, it
can be a good idea to find ways to make it easier for your tenants to gather
and interact safely.
One effective way to do this is to introduce more common areas, whether that be creating more lobby space by moving furniture or adding more outside seating areas to the garden. Not only will this make any existing tenants feel happier in your property, but it will also act as a great selling point for attracting new ones.
2. Flexible lease terms will become commonplace
The pandemic has caused many
people to be a lot less financially secure, which will make renters less likely
to want to sign up for long leases. This has led to an increasing number of
landlords offering more flexible lease terms to attract tenants at this
difficult time.
Therefore, if you want to ensure that your property or properties are not just lying empty, it can be a good idea to offer six or even three-month leases. If you need help with this, enlist the services of your local estate agents Coventry, who can help make sure that your rights as a landlord are fully protected.
3. Tenants are more likely to fall behind on rent
As mentioned above, the last
12 months have hit many people’s pockets hard, and this means you are much more
likely to experience tenants falling behind on their rent, even regarding
people who have always paid in full and on time up until now.
If this is already the case with one or more of your tenants or you are worried about it happening, you may want to get them to sign a Late Rent Payment Agreement. This document will clarify how they will catch up on their rent and help protect you if eviction becomes necessary.
4. Big city landlords may struggle
If you own property in a
large city, you are much more likely to have felt the effects of the pandemic
than those who rent in more rural areas. The reason for this is two-fold.
Firstly, the overall experience of having to quarantine in a small apartment as
well as the risk of getting sick on crowded public transport has led to many
renters abandoning big city life.
Secondly, with a large
proportion of the nation switching to remote working, a trend that is set to
continue throughout 2021, renters are actively moving to areas with cheaper
rents.
Therefore, if you are thinking of investing in further properties this year, you may want to buy in these smaller markets with great climates and local amenities that commuters are currently flocking to.
5. You may face eviction limitations
In 2020, many landlords could
not evict tenants for failure to pay rent because of blanket eviction bans. In
2021, you are more likely to experience eviction limitations rather than
complete bans. These may include tenants having to prove to you that they have
been affected by the COVID-19 pandemic or that they have sought all possible
forms of government
assistance.
To make this process easier for both yourself as a landlord and your tenants, make sure you clearly document these requirements within the lease agreement.
