For landlords looking to market their property, understanding the latest trends in the sector may help with how and when they decide to launch.
Here are our top takeaways for super prime landlords as we enter the summer season:
As we reach the halfway point of the year, there are some clear themes defining the super prime rental market in the capital. Not only are landlord and tenant profiles evolving but there’s also a continuing blurring of lines between sales and lettings at the top end.
Higher stamp duty costs as well as recent changes to non-dom tax rules are both positively impacting the level of international demand coming into the central London rental market – and seasonality seems more prevalent than ever.
1. Take care of the timing
Clients will often ask when they should launch their property to the market – and that doesn’t just mean season or month, but even down to the day of the week. Generally, midweek or a Friday seem to be most popular with landlords operating at the very upper end of the market in order to reach tenants looking or enquiring over the weekend.
School holidays increasingly play a major role in launch timings and we will always advise clients to consider these points in the year and to market at a time when the largest pool of tenants is in the capital. Families searching for a rental property ready for the new school term in September will be seeking to secure a home several months in advance, meaning now is the time to act.
2. Dress to impress
Presentation is always key, especially at this level of the market where tenants tend to expect the same levels of detail, design and décor seen in the world’s top hotels. Dressing a property is a wise move in that it really helps tenants see the space for what it is – and most importantly, they can begin to imagine themselves living there.
We’ve had some great successes with clients recently who’ve gone down this route; it’s limited their void periods and at times, driven competition among tenants too. Furnishing a home temporarily for the marketing period does not need to involve the whole house either; in a townhouse for example, it could be a few important areas such as the kitchen and living spaces as well as principal bedrooms. And during sunnier periods, that includes the outside space too – some garden furniture with cushions, parasols, lanterns and candles can really elevate the space.
3. The market is increasingly product driven
In recent years, we’ve seen tenants become more footloose than ever before, trying new areas and considering alternative neighbourhoods. For many, the decision to broaden their search has come down to being product driven, and they will venture out of their preferred locations if the right property becomes available.
While some will need to keep their area tight – often for schooling reasons – many will be prepared to move across the city if they’ve found a home that ticks the boxes, particularly if it delivers on the all-important rarity factor such as lateral space, a newly renovated interior, a spectacular view or simply the very best address.
4. Empty nesters are looking for a London lifestyle
In the last year we’ve noticed a significant rise in the number of empty nesters who have been swapping their townhouse to rent something modern and lateral. Often these are people whose children are away at school or who have moved out of the family home. We also see some in this age bracket who are international or are tenants who have released a larger rental property which required more upkeep but they still want space for visiting children or grandchildren.
One common thread is that they are all looking to embrace a London lifestyle – theatres, restaurants, members’ clubs – and having the option to lock up and leave to travel whenever they want. The downsizer market also wants amenities on tap such as on-site fitness and wellness facilities, as well as a 24h concierge for deliveries and a parking space to drive out of town when they need to.
5. The importance of realistic pricing
Sensible pricing is crucial when it comes to attracting tenants and ultimately achieving the best outcome. Using an agent with local experience and a strong track record is essential – asking them for comparables and their understanding of the area will give you a good indication of whether they are the right agent for you.
Taking their advice on a pricing strategy could result in shorter void periods, whereas launching at a higher level could mean fewer enquiries and little overall interest.
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