Landlord Leaders Community’s Post

Transcript

When we developed our ESG strategy, we were really clear that we actually thought we owed a duty and obligation to do more than just fund loans. So we have a responsibility to help support our communities and markets that we operate in. And amongst other things, one of the things that we looked at was thought leadership in the private rented sector and we've been running sort of landlord leaders community for a few years now and. The back of last year's publication around the future tenant standards, it was a natural step to move into the the psychology of the tenant and and why they think and dream about homeownership. Today's discussion was fascinating. I bought a totally different dimension to some of our previous discussions and really brought in the psychology behavioral element. And what I really liked about the discussion today was that actually extended beyond the private rented detect that because it made sort of comparisons to our real life experiences. The marriage, holidays, employment, which actually all brings it to life and the fundamentals of the psychology of the tenant actually, of course, everything that we do and there's some real quick wins for landlords that they they can adopt to help support the tenant experience and have a stronger, more professional private rented sector. The exciting thing about this piece of research was the fact we used some new methods from neuroscience from a qualitative and quantitative point of view that allowed. Just to predict the main factors that decided whether people moved from renting to owning a property and these methods, one of them was called predictive modeling. And what predictive modelling allows us to do with around about 90% statistical accuracy. Is it will allow us to know what factors play a role in an occurrence of the behavior. So it might well be, for example, that when you're thinking of renting a place, there maybe for example, 12 things that decide whether you choose a property over another property. Now what we haven't had access to up to now is the ability to know of those 12 factors, which ones are the most predictive or the most influential in that. Final decision. And so it's really nice to bring in this methodology for this research, actually lock down of the things that emerged. What are the things that mostly predicted that difference between renting and owning Before becoming a landlord, I worked as a lawyer for a long time and I understand that when a relationship is going well, a business relationship or any kind of relationship, you have a contract but you leave it in the drawer, you don't look at it. You only get it out of the drawer when there's a problem and it's the same between a landlord and a tenant that the tenancy agreement. Hopefully you never have to look at it again. What's more important isn't the written words. It's not the written words on the page of the contract and might think that's really strange as a lawyer, me saying that, but it's what's called the psychological contract. And that's how the tenant feels about the relationship and how they feel in the property and do they feel secure. It's exactly the same in the workplace. And it starts in the workplace at the interview. And it's the same with tenants. It starts when they view the property and it's a two way relationship. And we with the renters rights Bill's going to be coming into effect in 2025. We landlords need to be thinking about the long term relationship and managing it from their perspective as much as from our perspective as well. And it has to be a two way.