Bold statement, but let me explain.
The average length of Knights tenancy from 2010 to 2020 was just over 33 MONTHS in length. This is over TWELVE MONTHS longer than the average for the South East of England, which is widely reported to be approximately 20 months in length.
We measured this result over a 10-year period to be absolutely sure this was fair; we haven’t cherry-picked the best year; we’ve measured a decade of tenancies to find the truth.
As a direct result of the Tenant Fee Ban 2019, the cost to a landlord for establishing a new tenancy has increased so, it’s crucial to secure good, long-staying tenants to protect you from having to spend out on tenancy set-up costs.
By having longer staying, happier tenants you will also benefit from fewer void periods, less wear & tear and less investment in between tenancies, where you may have to do some odd jobs or redecoration required to capture another tenant. When you add all of this up over a period of several years; You will have spent thousands of pounds more by having shorter tenancies.
This means that Knights Landlords are financially better off and less-stressed by benefitting from longer-staying tenants.
We have produced these industry defying results from developing our own unique successful formula, our team of three experts (Mark, Ross and Phillipa) do all the work: meticulous tenant screening, first-class marketing standards, fielding all of the enquiries and taking all interest into consideration before concluding a reservation and much more.
Unfortunately, some Landlords will get tricked by low headline percentage commissions. Some landlords will put a lot of emphasis on this without really thinking about the process or the economies of scale that are at play.
Agents aren’t stupid, they’re aware of this and some agents will operate purely on volume, on quantity over quality. They seem to have geared their businesses specifically toward this. They’ll tell you whatever you want to hear, offer you a low headline % fee a high rental price to draw you in. They’ll Let the property to the very first tenant that comes along, without a second thought of what is best for the landlord. Some agents will even create 6-month tenancies and/or will purposely pick a tenant that wants to stay for the shortest time, so they can benefit from the set-up fees again and again! This is how they make their money and we think that’s wrong.
To break this down further, the negotiators that operate within these business models are often paid a low basic salary and high commission and they are fighting against each other to Let properties. They are not working as a team, focussing on what the Landlord wants, they are fighting against each other to secure reservations motivated by high commission targets. Then after the Let is created, the file goes off to accounts for processing and then to a property manager so they can deal with all the problems. This type of ‘McLetting Agency’ is the worst imaginable system for the creation of high quality, well-considered tenancies and it is from such operations that horror stories arise.
Letting a property is a long-term, financial and emotional commitment, as a landlord, you should think long-term and consider all of the variables and information available. Conduct lots of research, meet with multiple agencies, visit their offices, test their knowledge and you’ll soon know what to do.