They’re back…

I’m sure it will be a relief to many to learn that, having dropped off a cliff as COVID restrictions came into effect, a vital indicator of market activity has found its way back to what our team consider ‘normal’. (read more)

They’re back.  The phone is ringing, and email in-boxes are filling up.

Enquiries received by the Morton leasing team are back to pre-pandemic levels.  And from those enquiries our team are now back to securing 30 new tenancy agreements each week.  People are back on the move.

It’s true these enquiries are from prospective tenants who are very price sensitive. Our team have identified around 8% of our rental clients are experiencing financial hardship, but the remaining 92% are also very price conscious.  It remains very important for landlords to be aware of that sensitivity. 

The reality is that even before the dramatic effects of the Covid restrictions were put in place we were starting to see some softening in the rental market and that continues to be the case. 

I think one of the biggest factors that has impacted the rental market over the last few months, and which will have an enduring impact, has been the shutdown of AirBnB. That brought with it a significant number of new properties to be absorbed onto the leasing market. 

But it is also very important to highlight that finding the right value for a rental property continues to be a strategic process based on the knowledge and experience.   Yes, landlords need to be conscious that rents are not at the levels they once were, but equally I can say that tenants are not automatically getting everything they want.

The role of our leasing consultants is to monitor market conditions and ensure their clients, both landlords and prospective tenants, have a clear, educated understanding of where things are moving.  The role of our team is to dispel the myths that renters can set their own price but demonstrate to landlords there is value in adjusting their expectations.

Yes, it is a delicate balance but it is undeniable that delivering the facts is the best way to deliver an outcome and that’s proved by the fact our team is now back to negotiating thirty new agreements each week.

Posted in Ewan's Blog on 3rd June, 2020