Tenants with pets facing rent hikes after fee ban as landlords look to claw back lossesMarch 27, 2019
From Property Industry Eye
An agent is warning that having a pet could hike rents for tenants by as much as 3-4% per week once the fee ban is introduced in June.
Its warning comes after the agent recorded a 25% increase in tenants letting with pets over the past five years.
Lucy Morton, head of residential agency at JLL, said landlords and agents have typically charged a higher deposit to cover any damage and additional cleaning needed from having animals around the house, but added that this will be more limited once there is a five-week cap on deposits.
She said: “With the five-week deposit cap, landlords may be deterred from letting to tenants with pets or forced to charge higher rents to cover any potential losses. The increase would depend on the rental value, but we anticipate approximately an additional 3-4% per week.
“For example, a rent of £700 per week would potentially rise to £725 per week to make up for the shortfall.”
“With a host of regulations that landlords must adhere to, as well as the changes to mortgage interest relief, the fee ban and five-week deposit cap is adding yet another cost.
“This gives landlords no choice but to increase rents in order to see a return on their investment and they will need to hold firm on asking or renewal prices.
“However, tenants will only be happy to pay more if the property is of high quality and well-presented. It’s the properties in the best locations offering quality amenities that will attract tenants willing to pay a premium.”