Landlord Insurance News
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Tenants 'looking for a home, not temporary accommodation'
28th May 2012
Failing to take good care of your property as a landlord could make it harder to find tenants in the current rental market.
A new report from property advice service Designs on Property has claimed that tenants are increasingly looking for rental properties that provide them with a long-term home, rather than just temporary accommodation.
As such, they are becoming more selective about the quality of properties they choose to rent.
"This better rental stock and rising tenant's expectations means some properties are starting to rent out faster and at better rates than others," said the report.
"For the first time, bad landlords who don't take care of the tenant and the property aren't benefiting as much from increased rents and worst still, are increasingly likely to suffer longer voids too - potentially causing a cashflow nightmare."
To help keep their properties in top condition, owners should take out comprehensive landlord contents insurance to make sure they can meet the cost of repairing or replacing any damaged items.
If landlords are able to attract tenants, they stand to make healthy returns thanks to currently high rents in many parts of the country.
According to the report, rents are currently average between £700 and £800 per month across the country, with most of the highest rents being found in London.
Meanwhile, another emerging trend is the growing popularity of renting accommodation on a per room basis.
This benefits the tenants as it is cheaper than renting out an entire house or flat, while the landlord benefits from higher rental yields.
"Average rental yields for a whole property in the UK is around five to six per cent, whereas by renting rooms instead, landlords can secure rental yields of between ten to 15 per cent, almost doubling gross yields," said Designs on Property.
Posted by Brandon Parker