Revealed - the 414-page end-of-tenancy check out report

A property management firm says it recently compiled a check-out report for a property which was 414 pages in total.

The property was exceptional - a £108,000 per calendar month house in London’s Belgravia - and the management firm, Eccord, says the scale of the report highlights the complexity of tenancies for super-prime units and the meticulous nature of property management needed at this end of the market.

Eccord says: “Ordinarily check outs of this size and complexity can take weeks of back and forth. Instead, on behalf of our family office client, our property management team attended the property with the tenant’s representatives to collectively work through the report, negotiating and agreeing the deposit deductions within a two hour meeting.”

The management firm, run by high profile agent Jo Eccles, says that in both the more mainstream core London market, where rents are below £1,000 per week, and in the prime £1,000 to £5,000 per week sector, some 90 per cent of tenants are renewing.  

“We’re agreeing average rental increases of seven per cent and many tenants are choosing to renew in order to avoid the cost of moving and the uncertainty of running costs and tenant experience, if they switch to a new property. These high renewal rates across the market are interrupting the usual rental cycle, further limiting the number of homes available and holding rents firm” she says.

Eccles adds that some landlords – particularly those who own flats worth between £1m and £3m – are testing the sales market but not attracting the interest or offer prices they are hoping for. 

She says: “As a result, they are making the decision to return to rentals for another year or two, in the hope that prices for flats improve. Those who have actively decided to remain as landlords are aware they may be in it for the long haul, and we are seeing commitment to maximise their property’s value by investing in major long-term improvements such as new windows, kitchens and bathrooms.”

In Eccord’s latest market snapshot, the issue of Ultra High New Worth individuals leaving London is addressed.

“There has been a lot of focus on Dubai in recent months, with many private banks reporting a number of their UHNW clients choosing Dubai over London for their next purchase” says Eccles.

“Interestingly, we have seen some of our London-based clients relocate their families to Dubai, but none are selling their London home. Instead, they have instructed our team to rent out and manage their home as they intend to keep them as a long-term investment. The straightforward buying process, heritage and culture, and world renowned schools continue to appeal and the UK – and London in particular – is still a world-class destination and continues to attract global wealth.”