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Are November December months indeed worst for renting out?

Started by NF, May 16, 2024, 06:54:15 PM

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NF

Hello friends,

I am renting out a 1 bedroom flat around Shepherds Bush area to very good tenants and my dilemma is this-

My current contract with tenants is ending 1 Aug, they want to extend their contract till November or December 2025. I would really appreciate if you could advice me on couple of points please-

I have been told a couple of times that usually November December months are very dry and it is difficult to rent out a flat. August September are prime months. So my dilemma is that even if I really value the tenancy of my tenants but I am not sure I should be signing an extended contract until November or December. As every time I look for new tenants I will have to look in most difficult months... I wanted to ask if this is your experience also that November and December months are most difficult for renting out? I am trying to assess if this potential risk is worthwhile for me to keep good tenants.

Is October/January as bad also? Or February? Maybe I can negotiate another month with them...I just really want to keep these tenants and help them out also, because one of them are finishing their studies in by November 2025 hence this ask from them. But at the same time I dont want to create a problem for future tenant looking process, as August/September was such an ideal time to advertise for me and now it will be November or December every time.

I really appreciate any help or advice you can give.

HandyMan

Quote from: NF on May 16, 2024, 06:54:15 PMthey want to extend their contract till November or December 2025

Don't change the contract or issue a new one. Just let the existing one become monthly periodic, which will happen automatically if you do nothing.


Quote from: NF on May 16, 2024, 06:54:15 PMand now it will be November or December every time

Why would that be?

It's quite usual for tenants to stay longer than fixed multiples of 12 months, just as your current ones are doing.


Quote from: NF on May 16, 2024, 06:54:15 PMI have been told a couple of times that usually November December months are very dry and it is difficult to rent out a flat.

At present, with rental stock in short supply, there are a large number of applicants for every property. I would doubt that you'll have any difficulty finding a new tenant.



jpkeates

It's the lowest point in the market because people don't usually want to move before Christmas.

But it's academic. They can just stay if they want to and you can't stop them.

heavykarma

You are not going to be always looking for new tenants in Nov/ Dec, as Handyman says. It is much better to let this go onto  periodical tenancy. I have never renewed a tenancy  contract for many years.

In terms of which months are the easiest for letting, that has become very blurred and unpredictable over the years.  I would be grateful to have good tenants wanting to stay longer, not worrying about a detail like that. 

NF



Quote from: NF on May 16, 2024, 06:54:15 PMI have been told a couple of times that usually November December months are very dry and it is difficult to rent out a flat.

At present, with rental stock in short supply, there are a large number of applicants for every property. I would doubt that you'll have any difficulty finding a new tenant.



hello, thank you so much for your reply. I have not rented out to new tenants in 3years so I know things picked up really well since post covid times but I am a bit unaware about how well and whether its still a problem. so you wouldnt avoid November/Dec months?

NF

Thank you! just the agent is being adamant that not worth risking this for November December months. he said-avoid at all costs :/

jpkeates

And exactly how does your agent propose to "avoid this" at all costs or otherwise?

Hippogriff

Quote from: NF on May 17, 2024, 02:01:36 PMThank you! just the agent is being adamant that not worth risking this for November December months. he said-avoid at all costs :/

Likely the Agent is trying to con you into getting a new Tenant so some fees can be paid to them. Leaving the same Tenant in place for longer affects their cashflow (so they're putting it out, spuriously, there that it might affect your cashflow). The issue raised here - by you - I would consider to be a non-issue for many (as others have said) and now we realise an Agent is driving you remotely... it makes a bit more sense.

Don't trust you Agent even more than don't trust strangers on the Internet. Don't think they have your best interests at-heart, right now they seem busy creating some FUD (fear, uncertainty and doubt) in your mind... for what possible reason? Maybe they're having Christmas parties nearly every day of December, fuelled by the money of Landlords?

Don't extend anything... allow it to go periodic. Simples. Everyone here does.

HandyMan

Quote from: Hippogriff on May 17, 2024, 04:13:13 PMDon't extend anything... allow it to go periodic. Simples. Everyone here does.

Not only is this the best/simplest/most flexible approach, but it will save your agent from having to do any work and will avoid them charging you a tenancy renewal fee.

heavykarma


David

November/December are bad times for selling and I think that is where this comes from, if you needed to sell the property but had to wait for a fixed term to end you would then be in the dark months for selling.

For renting in Shepherds Bush I imagine you would have a queue for six blocks, but you will lose out on any potential students as they tend to rent from summer to summer, you might prefer professionals anyway. 

That being said I think it is worth exploring your options because I do not think you are considering the most important things, INCOME.


1. Do you really NEED an Agent?  Clearly they want to make commission so their advice is probably around that. 

2. Rents have increased massively, so your question might be "how do you make the best of this situation?"

If you do nothing the Tenancy will roll over to Statutory Periodic, no big deal unless you have failed to protect their deposit and serve the PI, otherwise their sanctions potentially double.

If you do allow it to roll over you can increase the rent, you need to give at least 30 days notice of that increase and it can only start from the first rent due date after the end of the current fixed term, so August 1st and I would give the notice May 31st just to be fair. 

They can refer the increase to the FTT but it is pretty easy to show it is market rent or if they pay the new rent then they can't refer it as it is deemed as accepted.  If they do refer it and it is found by the FTT to be fair then they have to pay the difference they had been withholding.

You can put it to them amicably, explain that market prices have changed substantially and you will only entertain them remaining if they accept a rent increase to market values.   

If you do not want renew you can evict them via S21, giving notice May 31st, if they remain in the property despite this then the SPT is created and you take the matter to Court and they become liable for that £355 Court Fee, Legal fees and Bailiff fees.  You will have already increased the rent so they will have to fight two fronts if they do not want to be amicable.

If you allow them to stay on the basis of a rent increase then you might delay a new Tenancy until New Year because you want to redecorate and maybe update the property to allow for increased in rent, aiming the property as those who are able to pay more. 

If you terminate the Agent you might get even more income from your investment.

Quote from: NF on May 16, 2024, 06:54:15 PMHello friends,

I am renting out a 1 bedroom flat around Shepherds Bush area to very good tenants and my dilemma is this-

My current contract with tenants is ending 1 Aug, they want to extend their contract till November or December 2025. I would really appreciate if you could advice me on couple of points please-

I have been told a couple of times that usually November December months are very dry and it is difficult to rent out a flat. August September are prime months. So my dilemma is that even if I really value the tenancy of my tenants but I am not sure I should be signing an extended contract until November or December. As every time I look for new tenants I will have to look in most difficult months... I wanted to ask if this is your experience also that November and December months are most difficult for renting out? I am trying to assess if this potential risk is worthwhile for me to keep good tenants.

Is October/January as bad also? Or February? Maybe I can negotiate another month with them...I just really want to keep these tenants and help them out also, because one of them are finishing their studies in by November 2025 hence this ask from them. But at the same time I dont want to create a problem for future tenant looking process, as August/September was such an ideal time to advertise for me and now it will be November or December every time.

I really appreciate any help or advice you can give.

NF

Quote from: David on May 18, 2024, 12:36:51 PMNovember/December are bad times for selling and I think that is where this comes from, if you needed to sell the property but had to wait for a fixed term to end you would then be in the dark months for selling.

For renting in Shepherds Bush I imagine you would have a queue for six blocks, but you will lose out on any potential students as they tend to rent from summer to summer, you might prefer professionals anyway. 

That being said I think it is worth exploring your options because I do not think you are considering the most important things, INCOME.


1. Do you really NEED an Agent?  Clearly they want to make commission so their advice is probably around that. 

2. Rents have increased massively, so your question might be "how do you make the best of this situation?"

If you do nothing the Tenancy will roll over to Statutory Periodic, no big deal unless you have failed to protect their deposit and serve the PI, otherwise their sanctions potentially double.

If you do allow it to roll over you can increase the rent, you need to give at least 30 days notice of that increase and it can only start from the first rent due date after the end of the current fixed term, so August 1st and I would give the notice May 31st just to be fair. 

They can refer the increase to the FTT but it is pretty easy to show it is market rent or if they pay the new rent then they can't refer it as it is deemed as accepted.  If they do refer it and it is found by the FTT to be fair then they have to pay the difference they had been withholding.

You can put it to them amicably, explain that market prices have changed substantially and you will only entertain them remaining if they accept a rent increase to market values.   

If you do not want renew you can evict them via S21, giving notice May 31st, if they remain in the property despite this then the SPT is created and you take the matter to Court and they become liable for that £355 Court Fee, Legal fees and Bailiff fees.  You will have already increased the rent so they will have to fight two fronts if they do not want to be amicable.

If you allow them to stay on the basis of a rent increase then you might delay a new Tenancy until New Year because you want to redecorate and maybe update the property to allow for increased in rent, aiming the property as those who are able to pay more. 

If you terminate the Agent you might get even more income from your investment.

Quote from: NF on May 16, 2024, 06:54:15 PMHello friends,

I am renting out a 1 bedroom flat around Shepherds Bush area to very good tenants and my dilemma is this-

My current contract with tenants is ending 1 Aug, they want to extend their contract till November or December 2025. I would really appreciate if you could advice me on couple of points please-

I have been told a couple of times that usually November December months are very dry and it is difficult to rent out a flat. August September are prime months. So my dilemma is that even if I really value the tenancy of my tenants but I am not sure I should be signing an extended contract until November or December. As every time I look for new tenants I will have to look in most difficult months... I wanted to ask if this is your experience also that November and December months are most difficult for renting out? I am trying to assess if this potential risk is worthwhile for me to keep good tenants.

Is October/January as bad also? Or February? Maybe I can negotiate another month with them...I just really want to keep these tenants and help them out also, because one of them are finishing their studies in by November 2025 hence this ask from them. But at the same time I dont want to create a problem for future tenant looking process, as August/September was such an ideal time to advertise for me and now it will be November or December every time.

I really appreciate any help or advice you can give.



Wow David. Really appreciate your detailed response. Thank you so much for your help. The agent knows I may not use his services, it was supposed to be a friendly advice but you are right...I dont't know how true it is. I was also referring to my previous experiencing trying to rent out around this time, but this was post Covid times, things were difficult then.

I actually have a very good relationship with these tenants and I want to keep them. I also give them a reasonable discount, as I manage the property from abroad and its important for me to have low maintenance tenants. I always used Openrent for renting out and it worked really well. I am sorry I seem to be a bit ignorant on this rolling bases contract and have a few question would love to hear your opinion on for future tenancies

Can tenants really just stay at the property without my consent if they wish so? I mean I heard a lot about eviction cases but I look for my tenants myself and usually have a good feel for people so luckily such situations never happened.

With rental increase-can I still serve them a notice and increase without signing a new contract? They are currently underpaying by 200 pounds a month. I am ofcourse willing to give them a good discount but not this much.(90pounds a month) so some increase is essential for me with all the increased costs of living and this being my sole income at the moment.

I like the idea of renting till December then redecorating for a month and renting out again around end of Jan.

thank you for your help and advice!

jpkeates

Quote from: NF on May 18, 2024, 01:16:27 PMCan tenants really just stay at the property without my consent if they wish so? I mean I heard a lot about eviction cases but I look for my tenants myself and usually have a good feel for people so luckily such situations never happened.
It's not a question of them staying without your consent, but they can stay until they either want to leave or you take positive steps to recover possession. Recovering possession can be quite simple, but it can be difficult - the tenant is perfectly entitled not only to stay beyond a current term, but they can ignore any notice you serve asking them to leave, which means you might have to go to court to recover possession.

QuoteWith rental increase-can I still serve them a notice and increase without signing a new contract? They are currently underpaying by 200 pounds a month. I am ofcourse willing to give them a good discount but not this much.(90pounds a month) so some increase is essential for me with all the increased costs of living and this being my sole income at the moment.
You can always simply agree a new rent with the tenants, and that's confirmed when they start paying it. If there's nothing in your contract about increases, or limiting increases, you can use a section 13 notice to impose an increase unilaterally (the tenant can appeal if it's over market rates). I've never had to use a s13 notice, personally.

Hippogriff

Quote from: NF on May 18, 2024, 01:16:27 PMThey are currently underpaying by 200 pounds a month.

The Tenants are emphatically not underpaying by £200 per month, unless they are in arrears? There is no indication of that written here - so what you meant to write is - you believe you can get more rent for the property than you do now, and you'd like to increase the rent going forward.

heavykarma

Hippogriff,what' s with this new job title "  Abuse Officer " ? Does that mean you are the only one entitled to hurl abuse at any dickheads?   

Hippogriff

That's been my job title for months and months now... I say job, but it's more a hobby, I say title, but it was self-granted. I got a grade rise at the same time.

HandyMan

Quote from: Hippogriff on May 19, 2024, 05:05:46 PMThat's been my job title for months and months now...

Longer than "months and months" IIRC.

Rummages in the forum...

Yep since 2021: https://www.landlordforumproject.co.uk/index.php?msg=32688

Hippogriff

Ah, Dennis989. I remember him, for all the wrong reasons anyone should ever remember another Human Being.

I wasted a lot of time with Dennis989. But not as much as he ended-up wasting. Shortly after that must have been the time I threw large amounts of savings into the rough seas of crypto. - I wonder if that was a consequence. Seems I am truly an over-sensitive person at-heart, the evidence is all there. Maybe I am sometimes antagonistic because I just care too damn much.

Hippogriff

Quote from: heavykarma on May 19, 2024, 08:29:55 AMDoes that mean you are the only one entitled to hurl abuse at any dickheads?

No. It's more of a figurehead position with absolutely no intimation of meaning as to exclusivity. Fear not. It comes with no entitlement, but there is a bundled sense of entitlement, as you'd no doubt expect.

havens

Quote from: NF on May 16, 2024, 06:54:15 PMHello friends,

I am renting out a 1 bedroom flat around Shepherds Bush area to very good tenants and my dilemma is this-

My current contract with tenants is ending 1 Aug, they want to extend their contract till November or December 2025. I would really appreciate if you could advice me on couple of points please-

I have been told a couple of times that usually November December months are very dry and it is difficult to rent out a flat. August September are prime months. So my dilemma is that even if I really value the tenancy of my tenants but I am not sure I should be signing an extended contract until November or December. As every time I look for new tenants I will have to look in most difficult months... I wanted to ask if this is your experience also that November and December months are most difficult for renting out? I am trying to assess if this potential risk is worthwhile for me to keep good tenants.

Is October/January as bad also? Or February? Maybe I can negotiate another month with them...I just really want to keep these tenants and help them out also, because one of them are finishing their studies in by November 2025 hence this ask from them. But at the same time I dont want to create a problem for future tenant looking process, as August/September was such an ideal time to advertise for me and now it will be November or December every time.

I really appreciate any help or advice you can give.



Consider extending the lease to January or February instead of November or December. This way, you can keep your good tenants and avoid the difficult winter rental period. Negotiate with your tenants to find a compromise that works for both parties.

heavykarma

Handyman, thanks for finding this. It brought back very fond memories of times past when Hippogriff would get called a ****  and there was usually some post from a " confused " individual to give us all a laugh. Such innocent fun.  It' s changed a lot, and not necessarily for the better in my humble opinion.