Leicester Letting Agents are combating rising costs for landlords in Leicester. Leicester’s newest online letting agent is rapidly expanding their services to landlords and property investors throughout the East Midlands, East Anglia and Birmingham in a bid to ease the financial pressure being forced onto them by tightening legislation, selective licensing, the tenant fee ban and to also combat the loss of security should the Labour policy of ending Section 21 evictions come into effect.
Whilst it’s still early days for the bespoke, short-term lettings service provided by Harry Albert Lettings & Estates, they have released guidance for those looking to join the scheme in its beta format. You can download their guidance by clicking the link below:
You’ll be looking to pay a fixed set-up fee to list on their website and booking platforms but this fee also includes end-to-end management from looking after the keys to booking guests in and out, inspecting the property after every guest, taking photos of every room, handling guest enquiries, handling disputes and much more including offering a range of premium serviced accommodation services which we understand will be available to landlords and property investors who really want to give their guests a five star experience.
Landlords, homeowners and property investors can fetch anywhere from £18 a night for a small bedroom in a tiny home to over £70 a night for an entire two bedroom flat which, when we consider the rent for a two bedroom flat in the city centre can rent for less, we can see the appeal.
The guidance they supply to their clients states;
This is a new service. As such, there may be a few bumps and hiccups along the way, but we aim to get these ironed out quickly.
Whilst we endeavour to ensure all guests are the appropriate fit for your property and will leave the property in as good a condition as they found it, we cannot give this guarantee. As such, we highly recommend taking out an insurance product to cover you in the (hopefully) unlikely event of accidental damage, malicious damage, theft (buildings and contents insurance) or personal injury (public liability insurance).
They go on to detail that they’re engaging with an insurance provider in an effort to provide a package that will cover all of the above insurances comprehensively from as little as 78p per day!
Clients have said that they admire the transparency of the local online letting agent and so far, the service they have received has been second to none.
With short-term lets, there’s no guarantee that you’ll be fully booked and tenants have far fewer rights if any at all. Whilst the appeal for holidaymakers, travelling professionals and those looking for a short city break is clear, it wouldn’t benefit the local communities and neighbourhoods if everybody became short-term landlords demanding ever higher rents whilst forcing fewer rights onto tenants who simply can’t find a long-term tenancy like they used to.
The Private Rental Sector Is CHANGING
As pointed out earlier, the reason Harry Albert Lettings & Estates are launching this service is that they anticipate that, without it, landlords will leave the sector and the likelihood is, foreign investors will purchase them hoping for capital gains which will leave them empty unless legislation is put in place and enforced to prevent properties from being left empty.
There is an easier way of course… and it will save long-term tenants hundreds over the course of their tenancy.
The managing director of Harry Albert Lettings & Estates, Andrew Hill left a scathing response to the selective licencing fees proposed in Bristol of £1’660 on Facebook, he said;
…selective licensing for landlords, in Nottingham is £600, Bristol, £1660. You think the landlord will cover this cost out of the charity of his heart? Unlikely. This will be reflected in increased rent to.
So, a property in Nottingham costs £400 a month in rent (keep it simple) and to cover the cost of the licence, rent is increased by £10 a month. 6months and the licencing cost is covered (we’ve not recommended a further increase in rent to the landlord yet to cover our increasing costs so it’s only set to rise faster and higher) but for the remaining 6 months, the tenants are giving the landlord £60 in profit… If the tenants are in the property for ten years, that’s £600 extra they’ve paid because local authorities want to fleece their landlords.
So, I’m not a landlord so I don’t have to pay for licensing but we do have fees which, when tenant fees are banned, will more than likely be reflected in the rent as we feel our landlords pay enough and tenants are our clients too, we can’t expect the landlord to cover the cost of our other clients. This will push rents up further and have the most impact on the lowest income earners and housing benefit claimants.
I just wanted to give you fair warning. The tenant fee ban sounds great in principle but just consider how much it will cost you as a tenant in the long run.
According to the online letting agents, Harry Albert Lettings & Estates are also soon to be providing a property auction service for those landlords and property investors who are determined to exit the market. They say they’ll “be pleased to offer their clients the most modern method of property auctions,” which we look forward to finding out more about in due course.
It seems there’s a lot going on for this rapidly expanding agency who left Zoopla, one of the largest UK property portals, behind after they tried to undermine the fledgeling company, a bad move, according to the boss of Harry Albert Lettings & Estates, as the start-up anticipated a long and fruitful relationship with the property portal for the higher-end properties that are coming onto the Leicester estate agent’s books and we’re looking forward to finding out what’s around the corner.