Don’t panic: like the petrol crisis, the current rental property shortage too shall pass
It’s been a very busy week and we’re not just experiencing “panic buying” with petrol; the rentals market has gone a bit insane too, with a lack of stock out there in central London and beyond and prospective tenants could be in danger of making hasty decisions or just not finding anything at all. This is where the retained agent is worth their weight in gold…
We’ve seen a complete flip over the last couple of months in rentals. A few months ago, there was masses of rental stock lying empty, at reduced prices. Spring forward to now, and there is hardly any quality stock at all, with prices going nuts and widespread reports of rental gazumping. It’s gone from a tenant’s market to landlord’s market, seemingly overnight.
Will this continue? No-one can really say right now. It’s been driven by universities going back, businesses requiring their staff to be back in the office again and a general easing back to normal life combined with the likelihood that many previous rental properties have been sold.
In a market like this, tenants really need someone on their side, and this is where it pays to have a retained / relocation agent on board, that’s to say someone who’s paid to search for you. Their client is you and they will do everything in their power to help you find your ideal home at a good price.
Instructing a retained agent is an additional expense - usually around a month’s rent as fee - but it opens up the market hugely as they can take advantage of their agents’ networks and off-market property contacts as many properties are gone before they’ve even reached the property portals.
So, what’s the best way to work with a retained agent?
Personality fit is key; you need to get on with them personally and trust that they understand what you’re looking for. It will be a short but pretty intense relationship. It might be stressful at times and you’ll spend a fair bit of time together!
Find an agent who believes in delivering quality over quantity. A retained agent will be dedicated to your search, but this depends how many clients they have at any one time. There are some who work on volume and who will spread themselves very thin and these aren’t going to be particularly successful. Find one that will cap the number of clients (we recommend 2-3) at any given time, so you know your search is getting their full attention. Always ask a retained agent how many clients they are currently working with.
Be prepared to move quickly: In a market like this, tenants have to be 100% committed to the process too. They have to be ready to view and motivated to make quick decisions. The other week, I had four properties lined up for clients on Tuesday. They couldn’t free up their diaries until Thursday, by which time, three of the four had gone…
Finding a property is a team effort and both agent and tenant have to put in the effort and time to reap the rewards of success.
Be prepared to listen to advice. A good agent will tell you if they think a landlord is taking advantage of the market and a property is over-priced or not in good enough condition. If necessary, they may recommend that the search is delayed until market dynamics settle.
Tips for finding a rental in a landlord’s market
Clear your diary and be prepared to view whenever something of interest comes to market. Response times are critical, or you will keep losing out.
Ask yourself, can I wait until the panic is over? If you can delay your search, do.
Always reconfirm appointments. Agents will often let a property and forget to call to let you know.
Narrow down your brief and be prepared to compromise on a few wishlist items. The tighter and more realistic your brief, the more likely you will find something.
Be wary of properties that have been on a while. Ask why and what the previous rent was.
Agents are looking to seal the deal at the highest price, as quickly as possible for their landlord client. Don’t feel pressurised into making a bad or costly decision that you’ll later regret.
Over the next couple of months, we will be closely monitoring the market to see when it re-balances and stock replenishes. Our best advice right now is, if you can, sit it out and wait for calmer times.
If you can’t do that, then a professional retained agent can help identify properties that may not be listed on the open market, help ensure that you’re still getting a good deal and help you to actually move.
Zoe Rose is a highly experienced rentals specialist with decades of experience in Prime Central London. She is in charge of rentals at Rose & Partners. zrose@roseandpartners.co.uk