Monday, Jan 19, 2009
Homeowners: don't read this and please carry on letting out your high-quality homes at cheap prices!
Telegraph: Buy-to-let: Warning for 'accidental' landlords
It may sound like the easy option, but home owners who think they can ride out the housing downturn by offering their properties to let rather than for sale face a nasty shock. This is a difficult rental market in which only the best properties are letting easily, and those "accidental" landlords who take a less than professional approach to renting out their homes are facing long and expensive void periods.
"Contrary to what people might think, the lettings market is not busy across the board," says Tim Hyatt, head of residential lettings at Knight Frank. According to Mr Hyatt, accidental landlords contributed around 25pc of the increase in Knight Frank's stock levels in 2008.
Posted by drewster @ 01:39 AM (837 views) Add Comment
9 Comments
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1. paul said...
Many corporate tenants will insist that you provide proof of your lender's consent before signing
Interesting. I know what I'll be asking for before signing my next rental contract
2. Theemperorhasnoclothes said...
Amateur landlords are a menace. I mean would you start an appliance rental business because you couldn't sell your washing machine, or a care hire service because you can't sell your car. No - you start a business because you have some sense of what is required to run that going concern. Being a landlord should be no different.
3. Kelvin Newman said...
not really seen the downward trend on rents as yet in Brighton but my lease is up for reneval so fingers crossed!
4. str 2007 said...
Of course this article could also have been put out by Knight Franks head of residential letting to try and protect his own portfolio.
And allowed by the Editor of the Telegraph to protect his.
5. will said...
The problem with 'accidental landlords' is that the rental income is calculated on the expected selling price of the house, and as these were highly optimistic in the first place they will not find tennents based upon those figures. It is just further denial of overvaluation.
When they have waited unsuccessfully for 12 months or more to let thier properties, they will realise their only option is to sell at reduced prices. Buyers have the upper hand.
6. drewster said...
This certainly reflects what I've seen in my local area. A lot of houses are now available to rent in what were traditionally solid owners-only areas. Judging by photos on Rightmove etc, the internal standards are much higher too - fancy kitchens and decent furniture. I'm loving it!
7. mark wadsworth said...
What Kelvin says, fingers crossed for renewal.
Even more insane are the people who say "I want to move but I can't sell*, so I'll rent a house where I want to be and let out my old one".
They then get hassle at both ends.
* i.e. can't sell at lunatic 2007 prices.
8. rm96696 said...
Sounds like still more "pent up" supply.
P.S. what happened to the housing shortage? there shoudn't be enough housing around to provide everyone with a roof over thier head.
9. need-a-crash said...
Yes quite agree rm96696. Come on all you VIs reading this site... where's your housing shortage now eh!!
Why aren't families and young professionals and all these immigrants beating a path to your door to rent your properties????