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What type of landlord are you?

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According to a government survey, published this year, most English landlords are renting property as private individuals, not companies. The average landlord is 55-years-old and their annual rental income is £15,000. Almost half bought property as an investment, with 44% looking to it to boost their pension. 

The figures come from the English Private Landlord Survey, commissioned by the government to collect information about landlords’ circumstances, properties, tenants, and the impact of legislative changes. The survey randomly sampled landlords and letting agents who are using a government-approved tenancy deposit scheme. 

It is the first survey of its kind since 2010. Since then, the private rented sector has grown by 25% to become the second largest form of tenure in England and home to a fifth of all households. 

While the survey gives a picture of the average landlord, there’s evidence that people renting property in the UK do so for a wide variety of reasons. 

Of the 94% of landlords who let property as an individual, rather than a business venture, many have full time jobs – as teachers, nurses, IT professionals and accountants or armed forces personnel. 

A large percentage of landlords chose to buy-to-let as an investment, but for many others renting out property was something they came upon accidentally. Often they inherited a property or acquired one after moving in with a partner, being unable to sell their home or relocating abroad. 

What type of landlord are you?

 

If you’re new to letting property, there are lots of decisions you’ll need to make – how hands on a landlord you’d like to be and whether you will use the services of a managing agent, for example. As a new landlord you’ll have plenty of duties to fulfil before your first tenancy agreement is signed too – from sourcing landlord insurance to fitting smoke alarms, so you’ll need to do your research. 

While you make these decisions, it’s worth thinking about the different sorts of landlord out there.  There may be more, but we’ve narrowed first-time landlords down to five main types. Which one are you? 

 

Parental landlord 

For many parents of university-aged children, buying a property in the town where their child is studying is a wise move, saving on rent and bringing in additional income. But what happens after graduation? With no stake in the property you many feel like selling up but using a managing agent could mean you can keep the rental income without the hassle.  

 

Inherited property landlord

If you’ve inherited a property, you’ll have lots to deal with from inheritance tax to a possible complete refurbishment. Renting out an inherited property is a good way to generate income and hang onto the home of a family member. Again, delegating the tasks involved could make it less of a chore. 

 

Moved on landlord

Whether you’ve moved in with a partner, changed jobs or even relocated abroad, renting out a second property can be a smart move. If you’re locating a distance from the property, you’ll need the peace of mind that it is being managed well. 

 

The would-be professional

Since 2010, there has been a raft of legislation affecting the buy-to-let sector, including tax changes, increased stamp duty land tax, and tightening of mortgage criteria. You can still make a decent profit from a buy-to-let business. But if you’re new to the sector it’s important to get the right advice. 

 

The pension pot landlord

In these days of low interest rates many people look to property investment to boost their retirement fund. A key issue for this group is knowing you can expect a regular income without the threat of void periods.  

 

How we can help 

Assetgrove’s own research reveals that most landlords, whatever their background, are looking for security when it comes to their rental income. Our rent guarantee scheme offers much more than that. We call it the ultimate way to hassle-free life as a landlord. 

Property owners, within the M25, who sign up to our rent guarantee scheme, receive the following benefits: 

  • We can lease your property at a fixed monthly rate for up to five years. 
  • For peace of mind, we will guarantee there are no void rental periods.  
  • We make sure the property is occupied within 48 hours – as long as it meets certain standards. 
  • We deal with all tenant issues directly, saving you the trouble. 
  • We maintain the property during the term of the contract, an advantage for landlords who can’t or don’t wish to be hands on. 
  • If necessary, we will take care of evictions, which can otherwise be a very expensive and time-consuming experience. 
  • We cover all utility and energy bills for you. 

For more information about Assetgrove’s rent guarantee scheme, contact us today. 

Neil Jennings

Neil is the Operations Director at Assetgrove Lettings, London's Leading Rent Guarantee Company, providing Landlords with no voids, property maintenance, fee-free property management and stress-free service.

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