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ARLA: Big rise in homeowners renting out properties because they cannot be sold
04th April 2012
There was a big surge in the number of homeowners renting out their properties after struggling to find a buyer in the last quarter of 2011.
A poll by the Association of Residential Letting Agents (ARLA) found that 47 per cent of its members witnessed an increase in the number of rental properties coming onto the market because they could not be sold - a rise from 18 per cent just a year before.
ARLA's operations manager Ian Potter explained that, given the currently sluggish housing market, rather than waiting for months on end for a buyer or accepting a lower price, homeowners are instead choosing to make an income from their property in the short-term while waiting for the market to improve.
"It's likely that many of these reluctant landlords will be attracted by the flexibility of a short-term let," he said.
This can also be a good option for anyone who has found a buyer for their home, but not found the right property to buy themselves, Mr Potter added.
"Equally, for anyone 'testing' a new area before committing to move there, or working away from home for short periods, renting can offer more stability and home comforts than a hotel."
However, whether letting a property temporarily or looking to get into the private rented business long-term, there are many things to consider before advertising a property to tenants.
This includes taking out professional landlord insurance, as standard home insurance usually will not be sufficient to cover a rental property.
Those renting out their home will also need to notify their mortgage provider, as letting the property could affect the terms and conditions.
"It is important to be wary of the potential pitfalls when renting out a property short-term, especially if it has previously been owner-occupied," ARLA president Tim Hyatt added.
"No matter how short the tenancy, it is critical that landlords take a planned and professional approach."
Posted by Jason Randall