THIS is a difficult time for small businesses and landlords. Landlords are small businesses and have suffered a fall in value by some 30% of their investment value.
Kevan Carrick, The Journal nebusiness.co.uk – 6 Jan 2010
In general, rental income has fallen by about the same amount, with some tenants having to vacate, which leaves no rental income at all.
In cases where the rateable value is £15,000 (rising to £18,000 from April 1, 2010) or above, the landlord also pays empty property rates as well as the holding costs for empty property.
As a result, landlords have lowered rent, offered incentives of rent-free periods and, where necessary, have improved the property to make it more attractive to potential tenants.
As the recession bites, the demand for commercial property has reduced, thus the tenant has assumed a stronger negotiating position.
Tenants as small businesses need to be highly competitive in business to survive the recession.
i have to agree I recently rented out a property in Bradford and the local agents were telling me that many landlords were offering the first month free and half rent for the first three months because competition is so strong. This was about 3 months ago now, so I’m not sure if the situation has changed.
Comment by sell house fast — 6/1/2010 #