In This Guide
Administration
Being a landlord
Buy to let investment
Choosing the property
Finding tenants
1. Setting the rental price
2. Finding tenants
3. Advertising property
4. Types of tenant
5. Holding viewings
Letting property
Lettings agents
Levels of service
Preparing the property
Problem tenants
Tenancy
Finding tenants
Types of tenant
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So who are the sorts of people that you are going to find knocking at your door (or preferably phoning you up) requesting to view your property? Here are some of the major tenant groups in the UK:
One of the largest groups of tenants has traditionally been -
and still is - those who rent their home from the local council
or from other Registered Social Landlords, such as housing associations.
For many people, housing benefit is an essential part of life
- they simply would not be able to afford to meet the cost of
rented accommodation without it.
The unemployed and those working in low paid jobs form the bulk of those people who rent from either the government or a housing association, as well as the small minority who are looking to play the system.
This is a large and quickly growing group who are now responsible
for the lion's share of the demand amongst private landlords and
professionally let properties. The three principle drivers for
professional sharers renting rather than buying would see to be:
- Jobs. Many fresh graduates
and young professionals are willing to relocate in order to
follow their work or to find new work. Around 250,000 move to
London each year to try to get a boost up the employment ladder.
If you don't know what or where your next career step will be,
renting can often be the sensible option.
- Lifestyle. Quite frankly
many sharers enjoy the company and social aspects of sharing
a house. They might not yet be ready to strike out on their
own and get their own place, for fear of too many nights in
alone. Many young professionals are city dwellers. Attracted
by the busy lifestyle and close proximity of amenities, a shared
house or flat in the city can be the perfect answer for their
lifestyle needs.
- Money. Last, but not least, for many young sharers, there are not always many other options. A lot of people now find themselves priced out of the market in the early parts of their careers and simply can't afford to buy. Others share whilst they save, since renting with other people is usually cheaper than renting on your own.
Although it is becoming increasingly popular for parents to enter
the buy-to-let market by buying a house for their university-bound
child to live in, the vast majority of students live in accommodation
that is rented privately or from the university. This includes
the large number of foreign students that come to live in the
UK each year and medical and dental students that live in special
accommodation.
The corporate rental market is booming, as landlords are waking
up to the fact that a whopping premium can sometimes be gained
from leasing your property on a short term let. Major blue chip
companies are always looking to house people in temporary accommodation
for the duration of a contract or project. These are people who
will rent at the higher end of the market, often coming to work
in the UK from abroad or relocating from elsewhere in the country.
There are three main groups within this category:
- Most young couples will usually try living together before
they buy a place of their own. It can make sense since buying
with your partner is such a big step. Often, if a couple are
serious about buying a place together, they will live in rented
accommodation while they save.
- Divorcees and recently separated homeowner couples will often
- probably quite sensibly - resist the temptation to immediately
buy a replacement home. Choosing to rent instead is probably
quite sensible, as the time after a major break up is definitely
a period of change.
- 'Living apart together' is something of a new phenomenon amongst modern couples, that can apply to both rented and owned property. Essentially, each individual of the couple will have their own home, which may or may not be shared with other people. The couple will split their time between their two places. This allows for a greater level of financial independence from each other and is a choice currently favoured by around 16% of the population.
Like it or not, the criminal fraternity is a recognisable social
group that is not averse to renting property, especially in inner
city areas. As our lettings insider tells us, dodgy dealers, pimps,
prostitutes and all kinds of creatures of the night can be found
renting the properties of unsuspecting landlords. This is why
you should always go through the administrative procedures that
will hopefully weed out at least some of these people.
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