Worldwide, London remains the one of the most popular destinations for those looking for the very best in luxury property rental. With London’s culture, business and travel opportunities proving hard to resist, more and more wealthy visitors to London are looking to move their lavish lifestyle to our capital city.
The good news is, this has created an active market and is great news for landlords. So we’ve put together an essential landlord guide to luxury property letting in London.
Whilst the income from letting a property in London, particularly a luxury one, can be considerable, buying a house for the purpose of property letting inevitably incurs certain costs on top of the purchase price. These include:
It is important to take all of these costs into account and undertake some accurate research on property rental incomes before you decide on purchasing a property for the purpose of letting. A quality estate agent will be happy to give you advice on the costs of renting a house in London.
There are possible pitfalls to all forms of property letting and those who are letting a luxury property are not immune to the issues of difficult tenants or maintenance problems. Below are the main property letting pitfalls and how these relate to the luxury property market:
For luxury property owners the income from rental can be so high that losses from empty properties are significant. Unplanned property voids can, to a great extent, be prevented through careful research into rent and the state of the rental market. It is always wise to have a contingency fund available to cover any unforeseeable issues but the best solution to maintaining a steady income from your luxury property is to employ the services of a good quality rental agent.
Allowing maintenance issues to continue without a solution is a mistake. Those who are renting a house within the luxury property bracket are not going to be prepared to put up with ongoing upkeep issues. Tenants in this sector will have high expectations and it is up to you as a landlord to ensure these are met.
Since April 2007 it has been the duty of the landlord to use a tenancy deposit protection scheme. This protects both your tenants’ deposits and the procedures that dictate how deposit issues at the end of tenancies are resolved.
Inadequate screening of potential tenants can be a costly mistake. In the luxury property bracket the damage that an unsuitable tenant can cause is substantial. Tenant screening processes should include character and employment references, research on social media and credit checks. Finding professional help with this can be a good solution.
Tenants renting a luxury London property will expect to see a level of quality and expense in the furnishings that match the status of the building itself. This has an obvious impact on the costs of accidental damage or theft. By commissioning or completing an inventory of all fixtures, fittings and furnishings, a landlord can protect him or herself against losses.
The possibility of having a tenant who is in rent arrears but refuses to leave your house is a concern. The potential loss of income from this in a luxury property rental is significant and legal eviction can take a long time. The very best thing to do in this circumstance is to engage your tenant in a conversation and discuss a mutually acceptable debt-reduction schedule. If measured steps don’t work and time is of the essence, it is possible to apply for an accelerated possession.
Experienced professionals should always be employed to draw up tenancy agreements, which should be clear in their meaning to both tenant and landlord. Under the usual arrangement, an assured short hold tenancy, you have certain guarantees but if you rent through a property rental site you will need to closely investigate their arrangements. If your tenant behaves in any manner that contradicts your tenancy agreement make sure you take immediate action as delays may compound any issues.
Prospective luxury tenants will be looking for both long-term and short-term property to rent in locations that offer the very best in London lifestyle, schools and addresses. Both Central and North West London are highly desirable residential areas and include St John’s Wood, Regent’s Park, Hampstead, Belsize Park, Maida Vale, Marylebone, Hampstead Garden Suburb, Kenwood and the immediate surrounding areas.
There can be no doubt that now is a great time to be investing in property to rent in London. Choosing the right property and the right professional advice are key to the success of any luxury rental. At Arlington Residential we have many years of experience in the sales and lettings of exclusive property in North West and Central London. Get in touch today for friendly and professional help and advice.
IF YOU WOULD LIKE TO SPEAK TO OUR TEAM ABOUT HOW WE CAN HELP YOU WITH YOUR PROPERTY SALES, RENTALS OR INVESTMENTS
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