There is much scrutiny on the UK property market at the moment, and much concern that first-time-buyers are unable to get on to the property ladder. With social housing only available to those on the lowest incomes, many who would have bought a home in the recent past are now renting. They are likely to continue to do so for the foreseeable future, too.
Responsibility
This presents an opportunity for landlords, but also a responsibility. When renting was seen mainly as a short-term stop-gap for young people while they saved enough for a deposit, tenants were probably more likely to have been happy with short-term tenancies and less willing to complain about unresponsive landlords. Older people with professional jobs and higher incomes make more demanding tenants, and most need the security of long-term tenancies and landlords who approach their work professionally. For those with children, this is particularly true.
Government
The government is looking to encourage more institutional landlords into the private rented sector, but small landlords should be more than capable of providing the kind of professional service that today’s tenants are increasingly demanding. There is a perception among many people that landlords are money-grabbing chancers looking only to make a quick buck from tenants and caring little for their safety. Making sure that as a landlord you work with your tenants to keep the property in good repair and give them longer secure tenancies will help improve landlords’ public image. Making sure you have landlords insurance in place and that you don’t overstretch yourself to buy are part of this: not having insurance and not taking into account upkeep costs when you take out a buy-to-let mortgage can mean being unable to finance repairs.
Tenants
This is important, as tenants who are happy with their home and landlord are more likely to respect their property and pay their rent on time. Better landlords generally have better tenants. Increasingly, poor landlords who fail to provide decent homes for their tenants are being targeted by local authorities. Accreditation and registration schemes are becoming more common, as some landlords look to take advantage of increasing demand for rental property by letting sub-standard homes. A recent survey in Liverpool, for example, showed that 43% of the city’s homes fell below the ‘decent homes’ standards.
When you become a landlord, you are taking on a responsibility as well as making an investment. Landlords are likely to come under greater scrutiny as more and more people rent rather than buy, and it is in the interests of both them and their tenants to approach their work professionally. There’s nothing wrong with making money out of buy-to-let, but it doesn’t hurt to make friends along the way.