Warning to the ‘amateur’ landlord
Leading North West Lettings and Property Sales Agent, Paul Ainsworth Lord has this week offered some ‘take care’ advice to the many ‘amateur’ landlords springing up across the Region attempting to cash in on the current home rentals boom.
The present difficult financial situation has meant rental properties are more in demand then ever at the moment and this in turn has tempted many inexperienced individuals to purchase the odd property or two with the more available Buy to Let mortgages and set themselves up as landlords.
But far from cashing in – for many of these ‘amateurs’ entering the rentals marketplace is proving less positive than they thought.
Rent losses likely
Explains Paul, ‘Unpaid rent arrears being suffered now by the amateur landlord is on the up and up for sure and my prediction is that many amateur DIY landlords here in North West and indeed nationwide will lose more and more of their due rent money in 2012.
Reports online* indicate that last year the number of tenants in severe arrears increased by almost 20% to the highest level for several years, and that 11,400 more tenants are over two months in arrears with their rent than a year ago. What’s more the number in this position is climbing which looks like bad news for the ‘amateur’ landlord.”
Advice always useful!
Paul warned that anyone with a property to rent can avoid the pitfalls by getting the right advice and the right support.
“All too often an over confident new amateur landlords will try and save a few pounds and avoid working with an experienced and highly professional lettings agent such as we are.
We are the top local lettings agent and last year we let 10-15 properties a week – that’s more property than anyone else in our local Darwen area – and we wouldn’t have that record if we didn’t do the job properly. We know how to find tenants quickly, what the right rents are, what management requirements there are and we know how to make sure that tenants always pay their rents.”
Right tenant -right rent
Paul explained that all too often an amateur landlord will unknowingly take on a bad tenant which in time costs them many times more than the modest agency fee which an expert agent such as Ainsworth Lord Estates charges. An agency offers wide-ranging support and guidance and will ensure landlords get their rents paid thus making their property investment a financial success.
“We don’t get bad tenants that we take on after meeting them in the pub or whatever. We’ve a strict tenant criteria, which has been carefully reviewed and improved over our 12 years of business – and we stick to it. We don’t get talked out of it because we like the look of someone. An amateur landlord doesn’t know how to reference a tenant a lot of the time and its no wonder some get taken for a ride.
We ensure that each tenant also has a home-owner guarantor and we offer landlords a rental guarantee which is backed by a professional insurance product that we pay for.
Our record finding the right tenant ready to pay the right rent across the Region is exceptional. Landlords with us rarely if at all have their properties empty and not earning them rent.”