There is a simple truth to what’s letting this year, and it’s as much to do with you as it is with the property or development. Sarah Tonkinson, Foxtons Managing Director of Institutional PRS and Build to Rent, shares what it takes to make your let successful in 2024.
Remember those old estate agency adages? ‘Time kills deals’ and ‘avoid the void’? Well, they're more relevant than ever.
Why? Because renters have their own ‘new normal.’
For the last four years, they've heard ‘come view it today,’ ‘get your references to me in an hour,’ ‘submit your offer now’ from agents, as we helped them navigate a hyper-competitive market.
Foxtons, in particular, have gamified our processes. Our tenants can apply in minutes, and you can agree a tenancy with a single tap. That's how we can sign up your tenant in as little as two hours. Our determined Negotiators can see who’s signed their contract and who’s paid their money. And if the deal isn’t done in 24 hours, they'll have it back on the market with more viewings booked in.
Our Central London average time to exchange: 46 hours
Our strongest landlords accept the offer and sign the contract within the day.
Source: Foxtons data as of 1 September 2024
Tenants will always want to rent in London, no matter the market, so they evolved. Today's renters are savvy, they're demanding, and they're not wasting time – so neither can you.
If you’ve got an applicant asking ‘can I bring my own furniture’ or ‘can I move in on this date’ – know that they aren’t just asking you. They’ve got their top five apartments lined up, and if you fall behind, you’re left behind. Void and all.
How do I keep up?
Avoid the void
With the money wasted on a 10-day void, you could have hired an agent and got a tenant in. Our Negotiators know the market and applicant pool inside and out. We've got the tech, the talent and the track record to get your properties rented fast.
Time kills deals
If you are a Build to Rent operator, you will only achieve full lease up if applicants believe in the dream at all times. Like Disneyworld – from the rubbish bins to the queues, they do not tolerate a single fault in the experience.
You know this already. It's why you've invested so heavily in the state-of-the-art gym, the residents’ app, the underfloor heating, the DJ for your rooftop bar…But then, when a tenant is ready to sign the lease, it takes a week for your response. A week? That is not the 'future of London renting' you promised.
I should mention, some operators have this all figured out. They're providing a seamless, premium experience from start to finish. So, if you're not doing the same, you're at a competitive disadvantage.
How do I get it right?
I know why you’re taking the time. There are big, costly consequences for getting it wrong in London lettings. But there are also big, costly consequences for not getting it right fast enough.
You need to be impeccably organised, entirely informed and unnaturally quick…or you need to trust London’s number 1:
• Foxtons have qualified renters – the technology that enables tenant fraud is evolving rapidly. So, we invest in experienced teams and absolutely cutting-edge tech to minimise risk, as we register approximately 50,000 renters per month across London.
• Foxtons fill vacancies fast – your future tenant may already have a My Foxtons account. Our database is unmatched, and our Negotiators build connections at breakneck speed to get you the best-suited tenants first.
• Foxtons do it right the first time – you don’t want to get to the end of a tenancy and realise you’ve made a mistake at the start. You don’t want to learn about some document you missed filing when the council comes knocking. Trust London's number one lettings agency*, and we'll guide you through the process, protecting your property and maximising your rental income.
The market is moving
Just a final note. Right around now, many London landlords go on holiday. But we are in the peak of the busiest season. In the latest lettings market report, I said:
“The data proves London's rental market is fiercely competitive right now. Applicant demand holds steady at peak levels and an average of 23 renters are vying for each new instruction. Also, many renters are exceeding their budgets, a clear indicator that renters are willing to dig deep to secure homes…”
Foxtons Lettings Market Report – read my whole quote here
This is the market where good landlords and good Build to Rent operators pull ahead of the pack. So you need to be organised and you need to be proactive. Get in touch and we'll get it done.
Foxtons Lettings for Build to Rent operators
Foxtons Lettings for Landlords
*Source TwentyCI data, 2023 v 2022 market share and market share growth of new instructions at a brand level.
Source: This article was written and edited by Foxtons Managing Director of Institutional PRS and Build to Rent, Sarah Tonkinson. Sarah has worked in the property sector for over two decades and has extensive experience in all aspects of lettings, from valuation to corporate strategy. She relishes the myriad challenges associated with large-scale Build to Rent developments and is constantly seeking new ways to deliver exceptional results for her clients.
