Landlords Slash Rents to Ensure Properties Stay Occupied
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It’s not an easy time for landlords currently. If you are a landlord, did you slash rents in 2020?Pressured by your tenant who said they MAY MOVE OUT? Many friends said they did; slash rents. This ranges from 30% to 50%. Number of month ranges from 3 months or higher. Imagine the landlord would now have the fork out money since their rental could no longer cover monthly repayment.
Some said they even gave a few months of free rental to their tenants too. Perhaps it’s important to let everyone know that they are not alone. Landlords in London’s most expensive areas were also facing pressure. Many landlords slash their rents to rent out their units or they may see their properties stay unoccupied.
We could see in the image below that London’s high-end sales market is not positive. In fact the numbers are usually below zero (means it’s negative).
Marcus Dixon, head of research at LonRes said, “It’s probably going to be another few months of accepting lower rents than maybe you’ve historically got. It’s just about the need for landlords to ride this out.”
The image below shows the typical average discount off initial asking rent.
Do read the article in full here: Article in nst.com.my
Indeed, it’s a time to ride it out
It’s not just landlords. Even home owners may be facing pressure of paying their mortgages if their company did not do well and they were asked to accept lower pay. It’s everyone, it’s many businesses. It’s across many industries even if there are industries which are doing well. Indeed, this is an unprecedented time and no one could anticipate how long the effects from the COVID-19 would last. This is really the time which everyone would need to ride it out, somehow.
This article was contributed by KopiandProperty.com