Renters are spending their own time and money on repairs to their home, severing the relationship with their landlord and prompting tenants to move. By embedding technology and streamlining the process, landlords can improve communication, increase retention and unlock potential with the portfolio, writes Cem Savas
Given the macroeconomic and political shocks of the past few years and their impact on household savings, many households across the UK are finding it increasingly difficult to make ends meet, prompting a revaluation of the extraneous costs which, however avoidable, are troubling so many families.
Couples with children who rent their homes are suffering the most from the spiralling cost of living. In the UK, 77% are either falling increasingly into debt each month or are left with no disposable income after covering basic living costs. For comparison, in the US it’s 71% and in Germany it’s 64%.
Despite the significant cost of housing, 70% of British renters report that they have been faced with household maintenance issues in the past 12 months. Almost half (46%) have experienced three or more maintenance issues in the past year.
This data comes from ‘Experience is Everything’ – our recent survey of 1,000 residents in the UK, US and Germany, which explored their concerns, priorities and preferences with regard to the maintenance of their homes.
Experience is Everything uncovered some harsh truths about the state of the residential property market in the UK. Shockingly, for almost all maintenance issues reported by residents, including urgent problems such as damp and mould, security and electricity supply, UK renters are forced to wait longer than their American and German counterparts for a resolution. This is striking when, in many cases, households are cutting back on essentials such as heating and groceries to afford their rent.
Compounding the cost-of-living crisis, in total families spent approximately £230m and 1.2m days in the past year resolving maintenance issues which they believe should have been paid for by their landlord or property manager.
Of particular concern to landlords, 42% of residents who experienced a poor level of responsiveness from their property manager in the past year will either definitely move or are likely to do so in the next 12 months.
However, if poor communication and inefficient property management are compounding the cost-of-living crisis for residents, and impacting their relationship with their landlord, then the centralisation, digitalisation and overall optimisation of these functions represents a compelling solution.
There are opportunities and bright spots for enterprising landlords who are willing to innovate in their portfolios.
In the UK, more than half (55%) of all renters surveyed said they would prefer to have a dedicated app to report home issues to landlords and property managers, rising to 72% for those in their 30s who are well accustomed to using technology to streamline everyday tasks such as grocery shopping to booking taxis. This demographic is only growing as a proportion of the UK’s rental population, accelerated by spiralling mortgage costs and house prices.
Reflecting residents’ preferences and priorities, landlords need to centralise and digitalise their property management functions into accessible and streamlined platforms that improve communications channels and accelerate maintenance resolution.
By doing so, landlords and managers can not only row back against the negative financial and health impacts affecting residents, but also protect their own reputations, increase tenant satisfaction and retention, and unlock opportunities for rental uplifts for an improved level of service.
Housing Digital Stakeholder Plentific’s award-winning software and contractor marketplace offer a complete solution for repairs, maintenance, voids and compliance works in a single platform.
Main image: Cem Savas is the chief executive of Plentific
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