Being a landlord is often challenging, and there are many regulations you need to be aware of. With new rules coming into force all the time, it is difficult for landlords to know what they should do during their business. The Tenant Fees Act has affected the way many landlords operate, and it has caused some confusion amongst landlords.
While a lot of fees are no longer permissible for landlords, there are still ways you can charge a higher rental price. There are also services and features you can offer tenants which they would be willing to pay more money for each month.
Tenants with pets will pay more rent
Recently, there has been a lot of focus on pet rental fees, with landlords stating two rental fees in their property listing. One price is the rental charge for tenants with pets, and the other is for tenants who don’t have pets. As you would expect, the rental fee for tenants without a pet is lower, because a landlord has fewer costs to deal with when the tenant doesn’t have a pet.
This method of working has arisen due to the capping of deposit caps. Many landlords felt they were unable to accept tenants with pets when they were unable to set the deposit cap at a suitable fee. There has been some debate as to whether pet rental fees are allowed, but ARLA Propertymark has spoken out on the matter.
David Cox is the Chief Executive of ARLA Propertymark, and he spoke about pet rental fees, saying; “This practice is a direct result of capping deposits under the tenant fees ban, as this problem didn’t exist before June 1. There’s been a long-standing campaign from the Dogs Trust, called Lets with Pets, which encouraged landlords and letting agents to take a couple of weeks extra deposit to cover the cost of a pet. But this practice is now unlawful under the ban and landlords are charging additional rent as it’s the only lawful avenue to mitigate the risk of damage from pets.”
There are many services tenants will pay more money for
A recent study of tenants uncovered a range of features that tenants would be willing to pay more money for, and a pet rental fee featured on the list. 32% of respondents said they would be happy to pay more to a landlord if it allowed them to live with their pet.
Other features tenants would be willing to pay more include:
- Access to a roof terrace
- Having a vegetable allotment at the property
- High-speed internet
- A guaranteed parking space
- Allocated storage space for bikes
If you are a Hackney landlord coming to terms with the Tenant Fees Act, these features are worth considering. You may not be in a position to offer all or most of these features at your rental property, but even one or two features can help you generate more income while providing your tenant with a better standard of service.
If you are a Hackney landlord, and you need help letting property, contact Wild & Co, and we will be more than happy to assist you.