The UK rental market is in a state of flux, with landlords and tenants alike feeling the effects of the coronavirus pandemic. As the economic downturn continues, Goodlord, a leading provider of rental property software, has predicted an increase in arrears and a decrease in landlords for letting agents.
The coronavirus pandemic has had a significant impact on the UK rental market. With many tenants facing financial hardship due to job losses and reduced incomes, there has been an increase in arrears as tenants struggle to pay their rent. This has put pressure on landlords, who are now facing increased costs due to the need to cover unpaid rent and other expenses.
At the same time, the pandemic has caused a decrease in landlords for letting agents. Many landlords have been put off by the uncertainty of the rental market and are choosing to leave the sector altogether. This has led to a decrease in the number of properties available for rent, which has further exacerbated the already tight rental market.
Goodlord predicts that this trend will continue in 2021, with an increase in arrears and a decrease in landlords for letting agents. This could have serious implications for the rental market, as it could lead to a further tightening of supply and an increase in rental prices.
To help mitigate these effects, Goodlord has recommended that landlords and letting agents use technology to streamline their processes and reduce costs. By using software such as Goodlord’s to automate tasks such as tenant referencing and rent collection, landlords and letting agents can reduce their costs and make their businesses more efficient.
Goodlord also recommends that landlords and letting agents take steps to protect themselves from potential arrears. This includes using technology to ensure that tenants are properly referenced, setting up payment plans with tenants who are struggling to pay their rent, and using legal protection to ensure that landlords are not left out of pocket if tenants default on their rent payments.
The UK rental market is facing a difficult period, but with the right measures in place, landlords and letting agents can protect themselves from potential arrears and ensure that their businesses remain viable in 2021. By using technology to streamline their processes and taking steps to protect themselves from potential arrears, landlords and letting agents can ensure that they remain competitive in the rental market.