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Being a landlord entails diverse roles and responsibilities, each tailored to different circumstances and objectives. In the dynamic landscape of the rental sector, various types of landlords emerge, each with distinct motivations and approaches. Whether you’re an established professional or new to the sector, our simple guide can help you identify which landlord category you can fit into!
Professional Landlords:
Comprising around 14% of the PRS, professional landlords navigate the rental landscape as a full-time occupation. Managing an expansive portfolio, often including Houses in Multiple Occupation, they handle everything from tenancy agreements to maintenance. The shift towards incorporating portfolios into Limited Companies or Partnerships has been prompted by evolving taxation norms.
Buy-to-Let Landlords:
Buy-to-Let landlords typically embark on their rental journey with one or two properties. These investors focus on rental yield, often targeting new build apartments or properties with desirable rental potential. Engaging letting agencies can assist in property research, tenant selection, and maintaining consistent rental income.
Accidental Landlords:
Accidental landlords found themselves in the rental sector by happenstance. Often spurred by financial constraints during the 2008 crash, they turned to renting out their owned or mortgaged properties. Regular check-ins, such as an annual ‘MOT’, can ensure properties are performing well, generating optimal returns.
Short-Term Landlords:
Short-term landlords temporarily lease their homes while traveling or working abroad. Whether through holiday lets or platforms like Airbnb, it’s vital to select tenants who respect and preserve the property. Attention to lease agreements, particularly the ground one clause, ensures a smooth arrangement.
Let-to-Buy Landlords:
Let-to-buy landlords emerge in subdued sales markets. When selling a property becomes challenging, they explore renting with the aim to buy elsewhere. This option hinges on favourable mortgage terms and interest rates.
Inherited Landlords:
Inherited landlords are those who receive properties as legacies. This emotionally charged scenario necessitates modernisation, as properties may require updates to meet rental standards. Collaborating with professionals can streamline the process, ensuring properties are market-ready.
At Carrick Johnson Letting & Property Management , we are well versed in all categories of landlords and the best course of action for them to take. If you still aren’t sure what type of landlord you are, or want to become, you can always get in touch with us and we can help you on the next steps of your journey – [email protected] 01626 335090
