If you’re a professional landlord, or a buy-to-let investor, then at first thought the forthcoming housing benefit caps might seem like a real headache – council tenants will not longer be able to afford to live in your property if it’s in a prime area such as the centre of London.
But it might be just the incentive you need to renovate your property, furnish it with high end contemporary furniture, and market it to the corporate and professional sector instead – which in the long run will allow you to earn more from your property.
Benham & Reeves Residential Lettings (www.brlets.co.uk), which has 10 offices across London, says the market is acutely short of properties to rent: on average there are eight applicants for every available home, so upgrading your property could allow you to tap into this lucrative market.
“Whatever one’s views of the caps, they will transform the lettings market in those parts of London where many benefit-recipients now live such as the W2 postcode in particular. It makes sense to refurbish and enter the more lucrative private sector”, says Marc von Grundherr, director of Benham & Reeves Residential Lettings.
One advantage of this approach is that rental income is highly likely to increase. “We’ve just refurbished a three bed property moving after years with housing benefit tenants. The rent has risen 28%. This is an extreme example and such a rise is never guaranteed, but it shows the difference made by a quality refurbishment on a well-located home.
“This is a rare opportunity to upgrade, possibly enhance rental income and definitely boost the capital value of your investment and to get back control of your property. Seize it.”
If you’re looking for high quality furniture for a residential let, then Danetti has a huge range. Many of our products are suitable for the commercial market, so they are extremely hard-wearing and resilient – just what you want from furniture in a rental property.
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