Too Many Tenants, Too Few Homes: The Reality of Renting in Today's Market

If you are currently looking for a rental property, you may already be experiencing just how competitive the market has become.  At Mint Homes, we regularly see a large number of people looking for homes, while the number of properties becoming available remains limited. A well-presented rental property at a realistic market rent can attract a significant amount of interest, with viewing appointments filling quickly and landlords sometimes receiving several suitable applications.  We understand how frustrating this can be for tenants. If you have applied for several properties and been unsuccessful, it can be incredibly disheartening.  We have put together some FAQ's to help better understand the process.

Who makes the decision on which application is successful? The role of a letting agent is to market the property, arrange viewings, provide information to applicants, carry out the necessary checks and present applications to the landlord. The final decision about which suitable applicant to proceed with belongs to the landlord. As an agent we can provide advice and guidance, but ultimately the landlord has to make the decision about who they feel is the right person or household for their property, within the requirements of the law. In the current market, landlords may find themselves choosing between several suitable applicants. That can be a difficult decision, particularly when every applicant has a different set of circumstances.

Why are there so few rental properties? There isn't one simple answer. The private rented sector has undergone significant change in recent years, with increasing regulation and changes to the way rental properties are managed and tenancies operate. We have also seen a number of landlords decide to leave the rental market, while others have become more cautious about letting their properties. Whatever the individual reasons, the result is a market where demand from tenants significantly exceeds the supply of available rental homes. This creates intense competition for the properties that do become available. From our perspective, this is one of the biggest challenges facing both tenants and the industry.

Why are landlords being more cautious? The responsibilities involved in being a landlord have increased considerably, and changes to the private rented sector mean that many landlords want to feel confident that they are making the right decision when selecting a tenant. When a landlord receives multiple suitable applications, they may consider a range of factors, including affordability, referencing, employment, household circumstances and the applicant's overall suitability for the property.

Can a covering letter help? When there are several suitable applicants, anything that helps a landlord understand the person or household behind the application can be helpful. We therefore often encourage applicants to consider providing a short covering letter with their application.

It doesn't need to be lengthy. You could explain:

• Who will be living at the property
• Why are you moving
• Your employment and general circumstances
• Why you feel the property is suitable for you
• Whether you are looking for a long-term home

A covering letter doesn't guarantee that you will be selected, but it gives the landlord an opportunity to see the person behind the application rather than simply a set of figures and referencing information.

Why can't everyone have a viewing? This is another area where we understand applicants can become frustrated. Our aim is always to offer viewings fairly and consistently. If we have availability, we will offer appointments to people who meet the relevant requirements and have expressed an interest in the property. However, there is a practical limit to the number of viewings we can conduct. If a property has 15 available viewing appointments and 40 people want to view it, unfortunately not everyone can be accommodated.

What can tenants do to improve their chances? Although nobody can guarantee that an application will be successful, there are some simple things you can do to put yourself in the strongest possible position.

Be prepared. Have your identification, proof of income and referencing information readily available.
Respond quickly. Properties can move very quickly in a competitive market.
Be honest. Providing accurate information from the beginning helps prevent delays later in the process.
Attend the viewing. Where possible, view the property before applying so that you know it is genuinely suitable for you.
Consider a covering letter. Give the landlord an opportunity to understand your circumstances and why you would be a good fit for the property.
Be realistic. Consider the property's size, location and affordability before applying.

Missing out on a property doesn't mean you aren't a good tenant. It may simply mean that, on that particular occasion, another applicant was selected.