Short Term Rental Markets Give Boost to End of Tenancy Cleaning Sector

Written by Posted On Tuesday, 04 June 2019 08:04

In high demand locations such as London, landlords are changing the way they rent their properties from traditional long term rent to short-term lets.

I examine the end of tenancy cleaning sector who are seeing an increase in business as a result of the increasing rental activity but reveal a fear for Brexit.

According to research by London letting agents Chestertons the shortage of rental properties in the capital is driving up rents The exit of many smaller landlords from the London market, in particular, the South West which was dominated by ‘accidental’ landlords, has had a significant impact on the number of rental properties available to prospective tenants which is undoubtedly driving an increase in rents.

Like many cities London accommodation is always in demand, letting your home while you go on holiday can not only cover your fixed costs but also bring you a significant profit.

The UK Residential Landlords Association has criticised the movement of homes from the long-term to short-term lettings sector as “damaging to communities”

The End of Tenancy Cleaning Business is Booming

One sector that is benefiting from the way landlords let their homes is End of Tenancy cleaning sector.

syk logoMy interview with Stefan Kiryakov company director at SYK Cleaning reveals another side to the rental market. His company has been operating in London for over 8 years and have seen significant changes. In particular how agencies have become increasingly more professional and steadily busier.

The last 5 years have seen a significant increase in activity for the end of tenancy cleaning coinciding with the changes in how landlords are letting their homes’. This has contributed to the cleaning sectors growth and the increase in our own company growth at SYK Cleaning”

For the landlord cleaning sector, the future appears rosy except for one doubt Brexit. Stefan Kirakov

The uncertainty of Brexit and when it happens the effect it will have on us a business to attract new staff is of real concern to us. Despite the growth of the business for me, it’s the biggest concern to be able to continue expansion without staffing problems”

The future for rental prices

Screenshot 2019 06 04 14.55.16

Image from Statista the Research & Analysis company

Average asking rents in London rose to an all-time high of £2,034 in the last quarter of 2018, according to research by Rightmove. It shows clearly that supply is down and demand is up

The UK now a nation of renters

This statistic shows the forecasted annual change in rental prices in London (UK) between 2018 and 2022,

There is a shift away from home ownership and towards the private home rental part of the market. Private renting has become prevalent, both out of need (i.e. more difficult access to affordable housing for first-time buyers, undersupply of homes etc.) and out of choice.

The average surpassed a previous peak reached in early 2016 as the available rental stock in the capital dropped 22 per cent in a year.

Sharing economy is growing

Warwick Business School academics also found that 23 per cent of the UK population use sharing economy services more than once a month and that the more educated you are the more likely you are to be paying for the likes of Uber and Airbnb.

Disputes start at the end of tenancy

End of Tenancy Cleaning

End of tenancy cleaning is required to reclaim the full security deposit. According to The Tenants Voice, 56% of deposit disputes in the UK are caused by the insufficient end of tenancy cleaning. Cleaning is also usually part of a more complex dispute.

Tenancy agreements stipulate that tenants leave the property in the same condition they found it. You are, of course, not expected to improve the condition of the property.

I would advise tenants to always ensure they keep copies of the inventory reports so you aren’t penalised for damage incurred before your arrival.

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nick marr

Nick Marr has been operating real estate websites since 1999 and has written hundreds of articles for numerous publications including Huff Post and The Independent Newspaper. He works with thousands of home sellers and real estate agents from over 40 countries worldwide and provides a unique insight into the international real estate sector. 

www.homesgofast.com

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