Are you considering becoming a buy-to-let investor or expanding your property portfolio? If so, you might be feeling anxious about the current situation as it seems that many landlords are leaving the private rental sector, so you may wonder if it’s wise to go against the trend.
The legal regulations governing private residential rentals in England are on the verge of changing. Assured shorthold tenancies, except for a few exceptions, are likely to become a thing of the past. Over the last decade, the legal aspects of letting property have become more complex. The upcoming changes have been the final straw for many landlords, and it’s highly likely that more will exit the market.
Being a landlord in the next few years will be different – there will be a stronger emphasis on keeping rental properties in good condition. If something goes wrong, the process of gaining possession may take longer. We predict that claims related to property disrepair, especially counterclaims (which private landlords have been shielded from by the accelerated possession process), are likely to increase.
With fewer and fewer homes being available in the private rental sector and a growing pool of renters, there is a greater need for rental properties than ever before.
It is so important that private landlords treat their rental properties like a business. To be well-prepared, it’s essential to carry out comprehensive research, gain a solid understanding of the workings of the rental market, and stay up-to-date with any upcoming changes.
Carefully analyse your financial forecast, ensuring that you account for regular maintenance costs and potentially the fees of a reputable letting agent to help you stay on top of daily needs.
Consider the possibility of legal proceedings if you need to take a tenant to court, as the process may differ from what many landlords are accustomed to. Legal proceedings involve costs and your time. While many landlords are fortunate to have excellent tenants, it’s wise to maintain a realistic outlook.
Take a thoughtful and rational approach when selecting properties to invest in, whether you’re a first-time landlord or have experience. Modern properties usually tend to have lower maintenance and energy efficiency expenses.
In summary, yes, the rental sector is undergoing changes, and this has made many existing landlords unhappy. However, if you do your research, now could be an excellent time for new landlords to enter the market.
If you need legal advice about this, email will.oakes@attwells.com
