New standards for 'material information' will ensure greater transparency on costs for tenants
By Helen Everritt, Property Manager
At Gro Residential Management we pride ourselves on working with an approach which guarantees total transparency for our clients – and that means for both landlords and tenants who turn to us for support.
For that reason we have fully welcomed a new National Trading Standards programme which is aiming to ensure it is made as easy as possible for all estate and letting agents to provide consistent basic essential material information for tenants.
Under previous legislation there was a legal obligation not to omit ‘material information’ from consumers on property listings, but practices around disclosure were not always consistent across the industry.
Now, under new regulations, introduced at the end of May 2022, such missing information will be highlighted – and from research we know this leads to suspicion from potential tenants, making them less likely to remain interested in the property.
As of June 1, all property portals are now required to include information which impacts on the ‘unavoidable costs’ a tenant will have to pay once they occupy a property.
This means details such as council tax band, the rent, and any deposits that may need to be paid MUST be available. Details on tenure are also required.
Transparency helps us maintain high occupancy rates for landlords
At Gro Residential Management we know transparency from the start is key for landlord, tenant, and for ourselves as residential lettings management specialists.
We know tenants want to see all key information provided, and that the more detail we can provide, the more likely it is they will commit to taking on the property.
Our commitment to transparency over every issue – from deposits and guarantors required to management costs, ensures landlords return to us to manage and market more properties for them, leading to occupancy rates over 95%, across hundreds of properties managed.
By arming consumers with as much information as possible with regard a property they are considering renting, we allow them to consider the pros and cons, particularly with regards to finances, before committing to a viewing.
Given our work with the leading online platforms, we were pleased to see On the Market and Rightmove – property specialists who each list Gro Residential Management properties on their websites – help shape this change as part of an industry steering group.
Despite having already met requirements, we reviewed our own ‘material information’ and used a recent rebrand and new website launch to ensure clarity on pages detailing property information, with prominence given to those key factors of rent cost, council tax band, deposits required (including highlighting when they are not) and EPC ratings.
These changes will be good for tenants and good for the industry.
Helping tenants make informed decision earlier speeds up the process, and ensures landlords are not left with properties in their portfolios sitting empty for a day longer than they should.
