Landlords Want To Buy More Ready Tenanted Properties

Wednesday, May 27, 2015

Landlords Want To Buy More Ready Tenanted Properties

Landlords Want To Buy More Ready Tenanted Properties

Tenanted Properties Are Landlords Top Purchasing Targets

Recent analysis of over 65,000 UK private rental sector properties has found that the number of ready tenanted properties purchased by portfolio landlords has reached the highest recorded level since 2005.

The analysis conducted by Countrywide Residential Lettings discovered that 11% of all rental properties bought by portfolio landlords in 2014 were already tenanted, a fourfold increase on 2008 figures.

Sitting tenants in rental properties sold by other landlords have often been tenants longer than the national average, with 25% having been resident for over 2 years, showing that even if landlords decide to sell properties it rarely affects their incumbent tenants.

Across the UK, the proportion of ready tenanted property sales has continued to increase, as PRS landlords recognise the value of keeping long term tenants and are prepared to provide them with specialist insurance policies to minimise end of tenancy expenditure and help them to ensure that rents are always paid.

Rent protection insurance provides landlords with guaranteed rental income even if the tenant defaults or suffers an unexpected change in circumstances, meaning that the tenant suddenly loses their job or become too ill to work then the landlord will still receive income provided that the tenant has been properly tenant referenced at the beginning of the tenancy.Tenant liability insurance helps tenants by protecting their hard saved deposits from deductions by landlords for damage caused to the rental property, even if the damage was accidental, there will still be a cost element to return the property back to its original undamaged state. Tenant liability insurance provides landlords and their tenants with up to £2,500 (GBP) worth of cover for as little as £60 per year.

In 2014 the proportion of landlords purchasing ready tenanted properties was highest in London and the South East, however between 2008 and 2014, the North East of England saw the largest uplift in landlords buying properties that were already tenanted.

PRS landlords are most likely to ready tenanted properties because it will ensure that they receive a rental income immediately, improving their return on investment. This is achieved by landlords buying directly from other landlords who are selling up, rather than buying from an owner occupier and having to find a new tenant.

Specialist insurance policies protect landlord investments further, providing tenants with added security of tenure encouraging them to remain in properties even longer, making excellent financial sense to landlords whether buying or selling rental property units.

This was written by Mike Clarke. Posted on at 11:30 am. Filed under Insurance. Tagged , , , , , , , , , , , , , , , , , , , , , , , , , . Bookmark the permalink. Follow comments here with the RSS feed. Both comments and trackbacks are currently closed.