More 'reluctant landlords' entering the housing rental market
The number of homes coming on to the rental market because their owners cannot sell them is increasing, according to the Association of Residential Letting Agents (ARLA).
A survey of ARLA members showed that 47% had seen a rise in “unplanned lettings” by homeowners who either couldn’t sell or wanted to wait until the market improved so they would be able to sell for a higher price.
It means that there are now many “reluctant landlords” who are turning to the private rental sector for the first time. ARLA president Tim Hyatt said: "Letting a property is an excellent way of generating consistent income from your property, if the correct approach is adopted by prospective landlords.
"However, lettings is an unregulated industry and there can be pitfalls for both landlord and tenant, including loss of monies. While we are, of course, happy to see an increase in the number of landlords, it is vital that every landlord - reluctant or keen - seeks expert advice before embarking on a rental arrangement.”
The private rental sector can be profitable but it can also contain several pitfalls for those new to the market. New landlords need to ensure they are up to date with all the legal requirements and draw up professional tenancy agreements in order to protect their property and avoid any costly problems.
Please contact Eugene Pritchard if you would like more information about landlord and tenant issues.