There’s been a lot of talk about rent controls recently, and it’s been making us nervous. Rent controls would be extremely difficult to bear if they were put in place right now – exactly when the cost of being a landlord is rising rapidly.
The good news is that rent control is not on the list for discussion by the Housing Minister, although he is planning to make several major reforms, including:
- Rent rises only once a year for sitting tenants – but of course if your tenants leaves within a year you can put the rent up when you advertise the apartment.
- Banning letting fees – Impression does not charge letting fees, so this will not affect our business.
- No longer allowing ‘no cause terminations’ of tenancy agreements. That one could slow down the paperwork when removing a difficult tenant, but it’s not going to provide any major headaches for us – or our clients.
These changes are designed to make tenants stay longer and feel more secure, which would also be good for owners. The apartment market naturally has a higher turnover than the usual residential home, so anything that helps tenants to feel more settled for longer will help you to minimise rent disruption and maximise your yields.