Landlords 'should consider needs of tenant'
by Sarah Ashcroft
Thinking about the needs of your tenants and what they will find attractive when setting up a home is vital for landlords who are looking to make money in the current economic climate.
According to Richard Donnell from housing intelligence group Hometrack, it is "vital" for proprietors to select the types of residence that are located in areas where individuals will want to live.
He noted it is important for property owners to increase their knowledge on the most in-demand places around the country that are the most mature for rentals, as well as where there is a "deep pool" of interest among residents.
Mr Donnell went on to note investing in residential property is all about ensuring that the building is occupied and rental income is maximised to meet outgoings and mortgage payments where a buy-to-let mortgage is used.
The industry expert also highlighted the need for landlords to consider letting and management costs, as well as the charges they are responsible for including service charges and buildings insurance.
"It is quite easy to get into the rental market whether you buy a property for cash or with a mortgage, its slightly harder buying with a mortgage as the lender will conduct a range of checks before advancing the loan but the key is to be able to come up with a suitable sized deposit," he explained.
This sentiment is echoed by Daniel Burgess, managing director of Discount Letting Service, who said a first point of call for landlords whose properties are not attracting tenants is the price it is being offered at.
Mr Burgess urged owners to carry out some research to check the house is not overpriced, then dropping it accordingly if this is the case.
The expert argued proprietors also need to make it clear when asking prices are higher due to special features or additional benefits in the building such as underground parking or gym access.
- Landlord and Tenancy News from Lawpack: Get expert advice on your obligations as a landlord and how to rent our your property successfully with Lawpack's Residential Lettings Guide
Published on: August 6, 2012
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