Landlord Insider

Covid-19 may have crippled the economy and sent government debt levels soaring, but the buy to let sector is enjoying a renaissance. As lockdown eases across the UK, the number of people searching for rental accommodation has increased. This has led to many landlords increasing the rent in their properties.

HMOs are one of the most profitable sectors of the buy to let market – landlords can earn three times as much from letting out rooms in a shared house compared to letting a property to a single family. Rental arrears are also less of a problem, as even if one tenant defaults, you still have income from the others. In addition, voids are also less impactful.

The full implications of the COVID pandemic are still unknown, but the UK economy has already shown a significant negative impact and it’s likely to affect the property market for several months, if not years. These are a few of the reasons why landlords should be preparing now for diminishing profits:

Rents in London and the South East have fallen dramatically during the Covid-19 pandemic. Figures show that in inner London, rents fell by 7.4% while in outer London boroughs, they fell by 3.6%, compared to a fall of just 0.7% across the whole of the UK. This is largely due to falling demand, with fewer tenants looking for rentals and a glut of available properties.

Landlords have a duty of care to ensure there are no vermin in a rental property before a tenant moves in. No tenant wants to be sharing their home with an army of cockroaches, rats, bedbugs or fleas. Unfortunately, problems can also arise during a tenancy, especially when tenants don’t look after the property. In this instance, the landlord might justifiably blame the tenant for causing a vermin infestation, but careful property management can also prevent issues.