Record tenant demand for all-inclusive properties

What are tenants’ top priorities in 2023?

According to the latest research by property portal Rightmove, searches for properties with all bills included in the rent leapt by 36% this year – the fastest rise in demand for any rental property feature. “Bills included” is now the second most popular search term for prospective tenants, only beaten by searches for pet-friendly properties.

Demand for properties with outdoor space is also still rising after a surge in demand during the COVID-19 pandemic. Searches for “balcony” and “communal garden” tied for the second fastest growth this year at 22%. A growing number of tenants are also looking for properties with a zero deposit option, potentially opening up a new stream of commission for agents if they refer tenants to deposit replacement schemes.

Why go all-inclusive?

Renting an all-inclusive property saves tenants the hassle of dealing with utility companies and makes their monthly expenses more predictable – particularly when energy costs have shot up over the last year.

But it can be a tough sell for landlords for exactly the same reasons. The number of all-inclusive properties plummeted last year as energy costs rose and landlords’ margins on all-inclusive rents shrunk.

Even so, now may not be a bad time to start offering all-inclusive rents again. The Chancellor extended the Energy Price Guarantee in this month’s Budget, and energy consultancy Cornwall Insight forecasts that the energy price cap will fall to just over £2,100 in Q3 and Q4 2023, bringing bills down from their current highs. Landlords who offer a 12-month all-inclusive tenancy now could see their margin improve throughout the year.

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