When you think of empty homes, you immediately think of problems regarding squatters and others trespassing on your property. Whilst certain landlords insurance policies may cover these eventualities, you may not always be fully protected , especially from the social repercussions which are generated by partially vacant neighbourhoods.
Inflexible Contracts and High Rent
The reality of the situation is that, whilst the solution to empty homes is to get people in them, many simply won’t due to the extortionate rent prices as well as inflexible contracts demanded by certain landlords. Whilst renting out in an HMO may prove to be a temporary solution, it is simply not feasible for a family. As such, there certain areas of the UK which are experiencing high vacancy rates which, if the situation is bad enough to have social consequences, could bring yield levels down in the long term.
The Vicious Reference Cycle
Some tenants are stuck in a position where they have received one negative reference, and as such, are unlikely to pass any reference checks in the future. Very few landlords will be willing to take the risk of taking on such a tenant when they can in fact much more easily get a low-risk tenant. A system needs to be implemented however, to better understand why a poor reference has been given. Is it the nature of the tenant? Is it their circumstances at that particular point in time? Many more questions need to be asked to clarify the matter.
Letting to the Council
In North Devon, there has been set up a new scheme whereby landlords can let their properties to the council, who then fill the properties with social tenants. This is set to give landlords a good rental income over a guaranteed period of time whilst ensuring that when the property finally becomes empty, it is the landlord’s property. This scheme should help those landlords who have previously been unsuccessful in renting out their properties.
The situation is complex, and although it is essential for social (and financial) reasons for properties to be rented out and whilst some landlords are guilty of over-charging, responsibility should lie with local government too.