Very low rent default rate so far, reports leading London agency

A leading London lettings agency is reporting only a very low rent default rate so far, despite fears that the Coronavirus crisis may trigger significant arrears.

Draker Lettings, which covers central London, has written to its landlord clients thanking them for their work to minimise issues during the current virus crisis.

Draker tells landlords: “We would like to reassure you that 95% of our existing tenancies have continued without serious issues in spite of Covid-19. Our clients are experiencing a three per cent rent default rate and we have seen a tenancy cancellation rate of two per cent (mostly in short term rentals). 

“We have responded quickly and professionally to any requests from tenants for assistance on your behalf during this period. Whilst no rent arrear is ideal, we aim to be as efficient and as supportive as we can be to you as our valued clients.”

Nationally there had been warnings from industry bodies and tenant groups of possible significant arrears because of many jobs being furloughed for some weeks and possibly months. Central London may well not be typical of the rest of the country in this regard but the Draker figures will make comforting reading for many in the industry.

In addition, Draker says that it has successfully undertaken numerous video valuations of properties and is ensuring that every available vacant property has a professional video for prospective tenants. 

“We can of course only video apartments that are empty but currently we are working through up to 10 properties a day” says the company, adding: “We have managed to let several properties in the last week solely based on video viewings - encouraging news!”

Earlier this month Letting Agent Today reported on Draker’s assistance being given to the wider community during the crisis, including delivering groceries to NHS workers and providing specialist foodstuffs to those with more serious health issues.

Now the agency says it wants to do more for its landlord clients too: “A small team of staff are ready to buy and deliver any groceries for you if you are unable to do so. Please contact us at any time if you need our help. Rest assured that we will always follow social distancing guidelines, leaving any groceries outside your door etc.”