Inexperienced landlords must be well-prepared, says the NLA
Permalink: Inexperienced landlords must be well-prepared, says the NLA
by Lin Freestone
Research published by the National Landlordsâ€™ Association (NLA) has identified a new breed of reluctant landlords, who are homeowners letting out their own properties to avoid selling at a loss.
The NLA feels that these new entrants to the lettings market pose a major risk to the overall health of the British rental market. New landlords, especially those who hadnâ€™t planned on starting a lettings business, must make themselves aware of the rules and regulations so they can operate their tenancies successfully.
The third quarter of 2008 showed that the number of new landlord instructions to let has grown at the fastest pace since records began. The research also shows that the growth in new instructions was significantly stronger for houses than flats.
In the second quarter of the year, 45% of surveyors reported a rise in new instructions, which increased to 56% of surveyors in the third quarter reporting a rise rather than a fall.
Although most of the new landlords hope their entry into the lettings business will be for the short-term, given the current economic outlook, it is quite possible that these reluctant landlords may have to rent their properties for a much longer period in order to see decent capital growth
There are a number of serious issues which, if not investigated properly, could leave the potential landlords in financial difficulties, as well as risking the well-being of their tenants.
The inexperienced new entrant will need to be sure that they have permission from their bank or building society to let out the property, and to ensure that the current insurance covers letting.
Other issues they will need to address include compliance with the gas and fire safety requirements, the provision of an energy performance certificate, and the drawing up of a written tenancy agreement.
The NLA can provide all the information, support and advice that is required including the NLA Advice Line and the major information resource, NLA Landlord Library.
The NLA advises that becoming a landlord in this market is not for the faint-hearted.
The private-rented sector provides accommodation for almost three million households and the NLA considers that there is a major risk that inexperienced landlords, although well-meaning, are not fully up-to-speed with their responsibilities and problems can arise.
The ultimate responsibility for operating the tenancy lies with the landlord and, although a good letting agent is worth their weight in gold, reluctant landlords need to be properly prepared.
Click here to discuss this: Home Move property forums
Related stories to: Inexperienced landlords must be well-prepared, says the NLA
Previous: « Fall in asking prices reaches new low
Next: Home Builders Federation calls for Â£2bn boost to homes fund »
Visited 888 times, 1 so far today