It is always interesting to understand why somebody becomes a landlord in the private rented sector and there are generally four main reasons.
The Accidental Landlord
The ‘Accidental Landlord’ is quite common and as the name suggests, is somebody who doesn’t plan it, but it happens for various reasons. They may inherit a property that they decide to keep and let. They may be moving with work on a temporary basis, in the UK or overseas and rather than sell or leave it empty, they let the property while they are away. They may have a change in personal circumstances, for example a couple deciding to move in together, but each have their own home, so they choose to let one of them.
The Accidental Landlord is often a newcomer to the private rented sector so they can feel unprepared for the sheer amount of legislation they are faced with. Much of it before a tenant even moves in and involving everything to do with letting regulation, as well as insurance, mortgage and tax implications. It is a lot to take on, especially if their rental property is not nearby.
The Buy-to-Let Landlord
The ‘Buy-to-Let Landlord’ is usually somebody who sets out to be a landlord for investment purposes, often to fund a personal pension. Typically, they will have done some research or sought advice as they are looking to get the best return on their investment.
Usually owning between one and three investment properties, the Buy-to-Let Landlord often has a busy work life and while they may feel comfortable managing the rental regulations, they can also be time poor so without enough hours in the day they may struggle to give their investments the commitment they need.
The Portfolio Landlord
The ‘Portfolio Landlord’ has four or more properties, maybe set up within a company structure and they will invest where it is most attractive for them to do so. This can mean they have properties in very different places so managing multiple properties and in different locations is challenging, so the Portfolio Landlord will want to rely on local knowledge and services.
The Professional Landlord
The fourth category is the ‘Professional Landlord’ and they are just that, their portfolio of property is their work and they earn a living from managing it.
But all landlords, even the professionals, need help at times, so at Pennington we offer a full range of services to all landlords, to suit all needs and budgets.
From our full management service providing complete peace of mind, to letting only and letting and rent collection options. Plus our Pick and Mix range of services for landlords who prefer to self-manage but can select services they would like help with, as and when they need them.
What type of landlord are you? And how can Pennington help you?
Contact us today –
Managing Director / ARLA Propertymark Advisory Board
Tel: 01394 337590