How to Win the Rental Game
/How to Secure a Rental Property in a Competitive Market
Demand for rental properties in London has been through the roof over the past months with the market having more than recovering from the lockdown slump. We’re regularly listing new properties only to have them snapped up within days and often over asking price.
Because we also undertake property searches for clients, we know from both sides of the ‘equation’ how tricky securing a property can be. We’re lifting the lid to share our top tips on winning in a busy lettings market. Here’s how to best position yourself to secure that sought-after rental property.
Draw your search parameter map and set-up alerts
You probably know that property search websites like Zoopla enable you to view your search results in a list view or a map viewing, show where each property is located. But did you know that you also create a customised search area? By dropping perimeter pins to specify a boundary area, you can create a search area outlining exactly where you want to live and include areas that would otherwise be excluded from a standard search by postcode or circumference search (I.e. ‘search within x miles of y’). Your map searches will be saved within the Alerts and searches section of your My Zoopla account and you’ll receive notifications whenever new properties come up in your desired area.
Creating a customised search area on zoopla.com
Set up a designated inbox and set reminders to check it periodically throughout the day
A recent property search for a client has been a great reminder of the volume of emails that can come your way when you’re property hunting. The rental market in London moves quickly and it’s easy to become inundated (and overwhelmed!) with new property notifications and appointment bookings. That’s why we suggest setting up a separate email account for your property search. You can keep your personal inbox clear of property clutter and if you’re searching at a more relaxed pace, you can even turn off the email notifications altogether and simply set reminders to check your property search account when it suits you.
Be quick off the mark
Those new to the London rental market can be taken aback by just how quickly things move. In the current busy market, it wouldn’t be uncommon for a property listed on a Friday to be under offer by Monday. This means you’ve got to be ready to act quickly. Be proactive in phoning for viewing appointments and confirm your appointments with the agent to double check a property is still available before you travel to view it. If there’s something you like the look of, get as much information from the agent before the viewing so you’re clear on their offer process and can have any necessary paperwork lined up. You can even request an offer form from the agent in advance of the viewing and have it ready to send once you’re sure you want to make an offer.
Get clarification on when the property is reserved to you
At many estate agents, having had an offer accepted by the landlord may not fully secure it for you. You may need to pay a holding deposit to stop any further viewings and reserve the property whilst you undergo referencing checks (which is usually put towards your first month’s rent or security deposit). Holding deposits are generally non-refundable should you change your mind and withdraw your application, so seek confirmation if the conditions of a holding deposit aren’t clear.
Align yourself with the landlord
In putting forward your offer in a busy rental market, you need to make your offer as attractive as possible to the landlord. Do your requirements align with theirs? High street agents will typically push for long contracts without break clauses (as this can affect their commission) but a decent agent will let you know if a landlord has preferences regarding their ideal tenant. It can be useful to include a short blurb about yourself in your offer (a couple of sentences will do) so the landlord gets a better sense of you. Also be aware that making an offer that’s contingent on removal of furniture pieces or upgrades to the property can put you out of the running when there are multiple offers.
Be prepared to offer above the asking price
In a busy Central London rental market, properties often go for over the asking price. Up to 10% is common, though we’ve recently seen as much as 20%. You should never put forward an offer that you’re uncomfortable paying, but be aware that sometimes even £25 over the asking price can put your offer a notch ahead in the landlord’s mind. Offering to pay 6 or 12 months’ rent up-front can also position you favourably and will almost certainly be required if you’re a full-time student living on your own.
Have all your documents ready to go - and brief your current landlord, employer, guarantor or accountant
Once your offer is accepted, you’ll be asked to undergo referencing checks. An independent referencing company will ask you to provide information to confirm your identity, a reference from your current managing agent/landlord and check your financial position. If you’re a student, are self-employed or receive Universal Credit, you may also need a guarantor. For anyone whose details you provide in your referencing application, it’s worth letting them know that they will be contacted so the referencing process can run quickly and smoothly. Managing agents can be particularly slow to respond to landlord reference requests, so do what you can to push this along.
If you’re moving between jobs or are self-employed, speak to the letting agent and referencing company on the best way to provide proof of your income. Referencing companies are generally looking for confirmation that you will be employed for the duration of the contract and that you’re earning 2.5x the annual rent. You may need to show pay slips, a P60 or bank statements to prove this.
With all these tips in mind, we’re sure you’ll be far more prepared to hit the London property market running and secure that sought-after home with ease. And if you’d like further advice, book a call us with. We’re always happy to have a chat!