Quality Tenants are most important to Landlords
Findings from a landlord survey carried out by property management firm Rushbrook & Rathbone, suggest that landlords who adopt a full management service are more focused on long term investment through capital appreciation than short terms gains via high rents. Recent reports stating house prices have soared at record levels already this year will be welcomed news by these landlords.
The survey revealed that the majority of landlords who use a full let, rent collection and management service are least concerned with achieving maximum rent (only 2%) and more focused (51%) on the importance of finding a quality tenant. A further 42% said care and respect for their property, as well as professional management support, is most important to them as a landlord.
Interestingly, a staggering 71% of respondents admitted not seeking any form of advice relating to the financial costs of running a buy-to-let property prior to making their first investment and yet, 90% claim the yield they generate provides them with sufficient income to enable them to reinvest in maintaining the property.
Sarah Rushbrook, Managing Director of Rushbrook & Rathbone says “It it encouraging that the responses demonstrate many landlords appear to be taking a professional approach to their buy-to-let businesses; seeking quality tenants, having the ability to re-invest in their properties in order to attract these tenants as well as encourage them to care for the property. It is however surprising that so few sought prior advice over the costs involved in such a huge investment. While ever rental income is good, it is of lesser concern, but landlords should still plan for future downturns.
In our experience, those landlords who opt for a let-only option are far more likely to be driven by achieving high rental income because they rely on the short-term gains. They don’t necessarily have the finances to fund assurances that would protect them such as rent guarantee, rent collection or management.”