15 Jul

Increase in part-time landlords

Increase in part-time landlords

There has been a rise in the number of people supplementing their main profession with a spot of landlording.

According to the National Landlords Association (NLA), part-time landlords now account for around 70 per cent of the UK's rental sector.

It also appears that 20 per cent of these part-time landlords are looking to increase their letting portfolio before the end of 2014.

Data gathered by the NLA shows the average semi-professional landlord owns four properties and enjoys a rental income of around £31,000 - although 25 per cent of this is reinvested in property or maintenance costs.

Four in ten landlords increased their letting properties by accessing buy-to-let finance and nearly half agree that such funding is easy to access.

However, four out of five landlords did call for an increase in competition in the buy-to-let lending sector in order to encourage more beneficial options to borrowers.

Carolyn Uphill, chairman of the NLA, explained that private landlords have invested around £20 million in rental properties in the UK and many view real estate investment as more favourable than savings.

She added that many people enjoy the role of landlord although it can be very challenging if they are having to also focus on their main job, while meeting the various needs of tenants.

Ms Uphill also stressed the NLA has a duty to ensure that any landlords planning to expand their portfolio are able to access all information that is is available so they can make informed choices.

"Our new guidance does just that and will provide everything you need to consider when looking for a new investment or expanding your portfolio, as well as tips on how to run your lettings business effectively and profitably," she added.

Meanwhile, new research has revealed that damage to property is the leading cause of disputes between tenants and landlords.

The survey conducted by Online Letting Agents found other top disputes included rent arrears and redecoration.

Around two- thirds of landlords resorted to the court system to settle such disputes, with 20 per cent revealing the amount disputed was more than £1,000.

Figures from the Ministry of Justice show that between January and March of this year, landlords in England and Wales went to court to make 47,220 claims to repossess property - equal to 525 a day.

There was also concern that even though inventories can be a way of avoiding possible disputes, 20 per cent of landlords admitted they had failed to carry out sufficient check-in and check-out procedures.

A study by Landlord Action showed that landlords can often take shortcuts to reduce their costs but in many cases this could be counterproductive, especially if they fail to serve an eviction notice in the correct way.

Paul Shamplina, managing director of Landlord Action, said: "I understand the need for landlords to consider every cost but I can’t stress enough that the notice is the most important part of a possession court case and the slightest mistake can end up costing a landlord significantly more than the cost savings in extra legal fees, delays and lost rent."ADNFCR-1222-ID-801735516-ADNFCR

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