Services Tenants Are Happy To Pay More For

Services Tenants Are Happy To Pay More For

As a landlord, you must find ways to provide tenants with an excellent service. You should also look for ways to increase your rental income. However, the introduction of the Tenant Fees Act in 2019 has caused many landlords to change their practices. This Act limits the fees landlords can charge, and it has changed landlords' behaviour.

An unusual way in which it has affected services offered to tenants comes with how landlords treat tenants with pets. Many landlords don't accept tenants who have pets. The additional costs of cleaning and presenting a rental property after a pet has stayed in the property means some letting industry professionals decide it isn't worth the bother.

Security deposit changes limit what landlords can do

Some landlords were happy to let to tenants with pets while charging a higher security deposit. The additional cost of the deposit meant landlords could afford to clean up at the end of the tenancy without being out of pocket. Many tenants were happy to pay this fee, as it allowed them to find suitable accommodation with their pet.

However, the Tenant Fees Act limits security deposits to a maximum of five weeks' worth of rent, when the annual rental fee is less than £50,000. If the landlord doesn't feel a security deposit capped at five weeks' rent is sufficient to cover the cost of letting to a tenant with a pet, they won't let to this tenant.

In recent weeks and months, there has been a debate about this issue, and solutions to the problem. One solution comes in the form of landlords offering two rental fees when listing a property. The lower monthly rental price is for tenants who don't have a pet. There is also a higher rental fee for tenants who wish to have a pet with them.

Not everyone believes this approach complies with the Tenant Fees Act, but there is support for this option. ARLA Propertymark has given it their approval, and it is likely to be a common feature in the rental market from here on.

Tenants are happy to pay for a range of services
A recent study suggests tenants are happy to pay more to allow their pet to stay with them, so it isn't a surprise that landlords are pleased to offer this service. Other services tenants are happy to pay more for, according to the study detailed by a UK furniture company, include:
• High-speed internet
• Guaranteed parking
• Access to a garden
• Satellite or Cable TV
• House cleaning services
• A parcel collection service

It is important landlords consider these services within the confines of the Tenant Fees Act. Technically, landlords shouldn't charge more for cleaning services, so caution is advised on meeting tenant needs.

However, for services such as high-speed internet connection or TV services, it is permissible for landlords to charge more. These are communication services, and landlords can charge more for these services in a rental agreement.

If you're a landlord in the North East of England, and you need help in serving tenants, please get in touch. At SK Property Management, we know these are challenging times for landlords, but we are here to help. If you would like assistance or guidance in letting rental property, contact us today.