A research conducted by the UN in the just concluded year, 2017 shows that the current world population will increase from 7.6 Billion to 8.6 Billion by the year 2030. This means that an estimated 83 million people will be brought to the world every year until 2030. The effects of these facts are the most basic, and obvious namely; demand for food, water, and shelter. Demand for housing and settlement will double which will prompt increased growth and development of the real state sector.
Now, the supply of housing in many countries is strained and as a result, this has led to congestion, the emergence of diseases, increased crime & scandals among other hazardous situations cropping up every single day. Increased population is posing a threat to the survival of humanity and various life forms. For example, increased growth in population is exerting pressure on the available resources. This has resulted in the destruction of forests and natural sceneries that support life in the search for a settlement.
Here in the UK, the impacts of an increased population are well felt. Housing is a constant issue facing authorities and heads of Government. Issues ranging from, poor infrastructure, Lack of enough housing facilities, inflated rental fees due to increased demand among other issues. The Government and housing bodies have come up with solutions as such; Amendment of policies, laws & regulations that protect tenants from landlords on issues such as; forced eviction, and inflated bills. Another solution is the incorporation of letting agents who manage properties on behalf of landlords. They ensure tenants pay rental fees, spearhead renovation operations, ensure high-security measures among other roles. This helps reduce strained relationships between landlords and tenants.
Advantages of letting agents in the UK.
- Through strict vetting processes, Letting agents are able to secure more reliable and hard to default tenants. This reduces the likelihood of defaulters.
- Letting agents are always up to date with legal amendments and law implementations.
- Letting agents are able to effectively manage properties and ensure properties meet the standards of the UK Housing Act. This reduces cases of congestion and poor infrastructures.
- Letting agents are able to deal with tenants on rent collection and the probable legal consequences for defaulters.
- Letting agents are able to study well the market laws of demand and supply and hence, are able to achieve a higher return portfolio than many landlords do.
Disadvantages of letting agents in the UK.
- Any charges billed off the budget are credited on the landlord’s account. This could range from repair costs to the purchase of inventory.
- Letting agents are paid from the income received from tenants. This depends on the agency protocol and rules of engagement. This may range from 5-20% of income received from tenants.