Tenancy Renewals
2022-2023
It is that time of the year when we reach out to current tenants and invite them to renew their tenancies which are ending on 31st August 2022 for another year into 2023.
You will shortly receive emails confirming the end of your existing tenancy and another one offering you a renewal.
Alongside this process, we have some changes behind the scenes. The purpose of this blog is to explain what is happening so you can look out for the emails.
change of underlying ownership
First some big news on our side. Over the course of 2022, my company Rainbow Capital Property Ltd has been selling our portfolio of properties to other investors. After 27 years as a landlord, it is simply time for me to retire.
The decision to sell was personal rather than commercial. I am going to leave the property business and pass over management to my colleague Tom Hudson, supported by our maintenance guys, James and Atila.
Ownership of 297a Clapham Road has transferred to another local landlord, namely Glen Smith who operates under the company name “Hallack Investment Ltd”. The terms of your current tenancy to 31st August 2022 have not and for the next month or so will not change however and the same rights and obligations simply continue between you and Glen.
We have got to know Glen well over the past year and he’s a good guy. He has a similar philosophy to us and cares about the welfare of his tenants and the maintenance of his properties. Like me, he’s a former accountant and has a friendly, businesslike and ethical approach to property investing.
It is possible Glen will retain Tom, Atila and James to continue the maintenance of 297aCR and be the liaison point for you guys. Or he might manage everything directly. That’s being worked through over the next few weeks. The same standard of service will apply either way.
Tenancy Renewals
1St September 2022 - 31st August 2023
Glen would love you to stay on as tenants for another year after 31/8/22 so you will shortly receive an email offering you a renewal of your tenancy on similar terms to those you have now.
Glen takes over at a tricky moment. The main challenge facing him is the astronomical rises in costs - specifically energy, council tax, water rates and the like. Over the past two years we have taken a big hit on energy with our annual bill rising from £25,000 to £90,000 - a combination of suppliers going bust along with our fixed rate deals, the tripling of wholesale prices and more folk working from home using more energy. You have been shielded from this pain suffered by the rest of the country as we agreed fixed rent tenancies with the cost of bills included and we honoured them. Interest rates have risen too so Glen’s mortgages are more expensive. And the Council keeps putting up the council tax.
So there will need to be some increases this year so that everyone pays a fair market rent to Glen upto August 2023, with rent rises sufficient to cover the increases in cost.
The good news is that the new tenancies will again mean your rent is fixed until August 2023, shielding you from any further rises in costs.
Glen will also confirm re-protection of your deposit directly by him and his company.
Ending Existing Tenancies
You may also get an email from me confirming the end of your tenancy with Rainbow Capital, including a formal Section 21 notice and notice of the transfer of your tenancy from us to Glen. We don’t usually like to use formal notices but as this is end of an era for us, we should do things by the book.
Time for Andrew to bow out gracefully / over to tom Hudson and Glen
I hope the above makes sense. In summary you will receive three emails:
Email from me at Rainbow confirming end of current tenancy 31/8/2022
Email from Tom or Glen offering you: (a) tenancy renewal 1/9/2022 - 31/8/2023 (b) additional confirmation of end of current tenancy
Email from Tom or Glen confirming safe transfer of your deposit
I hope as many of you renew your tenancies as possible.
As for me, I became a landlord when I was 25. Now I am 52 and no longer a young man. It is a job that requires almost 24 x 7 x 365 vigilance. It’s time to seek an easier life with new adventures. As I leave the property rental business I wish you all the best of success in the future. Thank you for being the best tenants a landlord could wish for and for allowing me to accommodate you. It has been my privilege.
Best wishes,