Within the Renters’ Rights Bill is a clause that tightens rules on setting and increasing rents, with landlords required to set rents in line with the rest of the local market. Tenants, meanwhile, will have a greater ability to challenge what they believe are unreasonable rent increases once the bill comes into effect.
With rent increases to also be limited to once a year, setting the correct rent has never been so important. Yet, clearly understanding what the market rate is can be challenging without the right tools in place.
Data analytics and AI can help with this task, allowing landlords and agents to understand local market conditions, manage costs and optimise rental income without falling foul of the new legislation or their tenants. But it can also go beyond this too, allowing better control of costs and the chance to maximise profits through more efficient property management.
How it helps in setting rents:
Analysing datasets
Such tools can be used in research of the local market to analyse rental properties, comparing location, size, amenities and comparable prices to provide the most accurate assessments of the market and the properties that align most closely.
Tracking trends
Such analysis can then be tracked, allowing the identification of high-demand areas where future rental price fluctuations may be higher than the norm.
Understand tenant behaviour and preferences
Data analysis can also help landlords and agents better understand their tenants’ behaviours and preferences, allowing them to tailor properties, portfolios and rental levels more closely to their chosen market. This can help reduce void periods and maximise the property’s appeal at the lettings stage, as well as maximise rents.
Identifying cost savings
Data analysis can also help landlords and agents manage expenses, identifying areas where they can reduce costs – such as through energy consumption or maintenance – that will enable a greater margin between the rent set and the amount of money landlords need to cover their own expenses.
Other ways data analytics can help manage rents:
Predicting future issues
Landlords will often face unexpected bills, which can make budgeting and cash flow management challenging. Predictive maintenance tools can help to anticipate potential repairs, allowing landlords to better plan what their expenditure might be.
Improving efficiency
Efficiency is also crucial to effective property management. Here, technology can also help. AI-powered chatbots can handle routine tenant enquiries, while online platforms can streamline the tenant application and screening process. Automated rent collection can also improve efficiency, improving payment processes for all and reducing the risk of late or missed payments.
Making the most of data analytics
By maximising the potential of data analytics and AI, landlords and agents can better inform their decision-making and optimise their rental pricing for the properties on their books. As well as allowing them to remain competitive and profitable it also ensures compliance with the Renters’ Rights Bill requirements.