“Smudge, did you know there are lots of different names for Landlords?”
“Yes of course, I have seen Maxine’s client list, there a Bob, a Joe, a Rosemary & a Mrs Windham & my favourite Mr Burpitt!”
“No Smudge, I’m not talking about individual names, I mean types of Landlords.”
“What, similar to different types of dogs like those weird Poodles we saw earlier?”
“Sort of Smudge, although none with quite such curly hair! I have written out a list of the different types so that they can identify themselves.”
“That is so weird, fancy not knowing if you’re a poodle or a rottweiler!”
“Well there is no excuse now, it’s all in black and white. Statistics are courtesy of Homelet Referencing Company.”
Approximately 14% of the Private Rented Sector is made up of Professional Landlords.
Landlords who earn a living from their rental portfolio, often self-managing or employing their own team to take care of everything from tenancy paperwork to maintenance. Often they have Houses in Multiple Occupation within the portfolio, which require licencing and additional safety checks. In recent years a number of professional landlords have transferred their portfolios into Limited Companies or Partnerships, due to the levels of taxation for properties which are not the main residence.
BUY TO LET LANDLORDS
Approximately 42% of the Private Rented Sector is made up of Buy to Let Landlords.
Often first or second-time landlords, sometimes buying new build apartment or a ‘typical’ rental properties (which are often 1 or 2 beds with a good rental yield – between 4.5% to 6%). We love to assist Landlords with their choice of investment property. Perhaps an already tenanted property where the Landlord needs to sell with the present tenant in situ, offering minimal risk, due to prior knowledge of the rental level and tenancy history. For other Landlords, we are able to assist with research before buying, as a purely letting agency, we are able to consult with estate agents in the local area and can help our landlords to find the best place possible.
Approximately 28% of the Private Rented Sector is made up of Accidental Landlords.
‘Accidental’ is the name given to Landlords who didn’t plan to become landlords, but fell into the Rental Sector by accident. A huge proportion of these landlords suffered at the 2008 financial crash and were unable to sell their homes, so they found other ways to enable their move, often by using an owned or mortgaged property as a rental investment. At Maxine Lester, we offer an annual ‘MOT’ to ensure the rental property is performing well and offering advice on keeping the rental yields above average, please contact us for further information.
SHORT TERM LANDLORDS
Approximately 8% of the Private Rented Sector is made up of Short-Term Landlords.
Landlords who rent out their own homes whilst they are away on holiday or travelling abroad, perhaps with work or an overseas adventure. Often, if it is very short term (one week to six months) it will be let on a ‘holiday let’ rather than an assured shorthold tenancy, or even via a site such as AIRBNB. It is imperative to find tenants who truly value their landlord’s home and will treat it with respect, ensuring it is ready for them to come back to at the end of the term. A ground one clause is necessary for these types of scenario.
LET TO BUY LANDLORDS
Approximately 2% of the Private Rented Sector is made up of Let-to-Buy Landlords.
Often, in a downturned sales market, a property cannot be sold and yet, it is essential for the vendor to move home. In these scenarios, it may be possible to rent the home out on a ‘Let to buy’ mortgage and still proceed with buying the new home. Of course, this is very dependent upon the mortgage situation and interest rates being favourable. Hence why it is the least popular of the landlord options.
Approximately 8% of the Private Rented Sector is made up of Inherited Landlords.
Although this is a lovely position to be in, having a property gifted as an inheritance, comes with its own problems. Often there are high emotions, due to the circumstances of the inheritance, and perhaps a number of new owners coming to grips with the best situation for everyone. Potentially the property is not to the required standard for letting it out, energy performance levels must not be lower than Band E, and quite often we find that these properties have been neglected for many years and require modernising before they can be marketed. We are very sympathetic to this type of situation and work with our clients to advise on fixtures & fittings for a rental home in order to attract the best tenants in the optimum time.