8:49 p.m. - 2010-05-22
Do you know Accidental Landlords now on the rise
You might have read the phrase accidental landlord and pondered what that was or exactly who these individuals are?In a still or downward property market, the owners of homes who want to move but can't find purchasers and can't cut the prices of their homes are letting them out instead, becoming landlords by accident.
Most accidental landlords, are at the same time turning into tenants, moving themselves in to the homes of some other families who can't sell their homes. Often this changes of address mean an upgrade, far better bathroom in a better neighbourhood.
Fees for running rental houses, in the past a profitable source of revenue for letting agents, are falling quick thanks to intensive competition. Management expenses, which cover inventory checks, rent collection, and cleansing and upkeep arrangements, typically run at 10 to 15 per cent of the rent. As a result, the majority of buy-to-let landlords manage their own houses.The massive progress of the private-rented market has drawn several new agents to set up, and levels of competition is strong. Management expenses are set to fall, and new varieties of services are being presented.
Since the mid 1990's the quantity of buy to let mortgages has gone up every year according to the council of mortgage lenders. The property market has stunted down but investors are still purchasing houses, or homeowners are still resorting to rent out there homes due to reduced house prices. Banks and building societies keep on to be competitive for investors' business, with many buy-to-let interest rates broadly similar to those billed on ordinary residential loans.
In the mean time demand coming from tenants appears to be to be keeping up.
There may be an antisipated decrease in rental income, which presents a challendge for those Landlords whose mortgages stay high. This brings a huge dilemma for stressed landlords as house values are too low to sell, yet renting the property out doesn't cover their expenses. Added to this are going to be servicing issues and voids generated when renters leave.Something has got to give as the landlords can't keep putting cash into these kinds of houses with out experiencing a return.
A qualified letting agent can help you to reduce void periods and maintain maintenance costs down.
There are more than 50 Acts of Parliament and 70 sets of regulations regulating the private rental houses and landlords risk large fines if they don't conform with these. There are many safety issues to consider and the rental properties have to be examined every year to make certain the electric and gas home appliances are not dangerous. There is also fire safety to take into consideration, smoke and or fire detectors should be installed and all provided furniture must have fire safe labels.
A decent Nottingham letting agent will be able to recommend good tradesmen at good prices should any work need doing to the property. The letting agent would make sure that all laws and regulations are abided by and you should be advised accordingly. You can and always should use the services of a letting agent to find the right tenant and manage your property.
more information can be found here: Accidental Landlords
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