Finding Good Tenants Is Problem for Landlords

Sourcing good tenants who look after their homes are the biggest challenge for buy-to-let landlords.

Data from property portal Zoopla shows finding reliable tenants worried 56% of landlords - a shade ahead of the 55% who struggle to find tenants who care for their rented homes. 

Although these were their main property business challenges, landlords also have other concerns:

• Making sure rents are paid on time (47%)
• Keeping businesses in line with increasing regulation (39%)
• Worries about how future law changes may impact their finances (36%)
• Managing businesses to keep making rental profits (32%)
• How tax relief cuts affect offsetting mortgage interest (24%)
• How rental values are performing (20%)
• What impact the tenant fee ban from June 1 will have (20%)
• Stricter buy to let mortgage rules (17%)
• What will happen to property prices (17%)

The State of the Property Nation 2018 report also revealed only a few landlords would admit they understood recent law changes and how they would impact the buy-to-let market.

• 37% had no idea mortgage interest tax relief was changing
• 31% did not know houses in England shared by five or more tenants required a licence
• 31% were unaware letting energy inefficient homes could result in a fine

Other legal issues that landlords needed to know more about include minimum room size regulations (25%), the upcoming cap on deposits, the ban on tenant fees and giving a ‘how to rent ‘ guide to tenants (all 23%), tighter mortgage financing rules (22%), the ban on charging fees for card payments (15%) and the national rogue landlord database (13%).

“Most of the landlords who find the legislation changes a challenge are not planning to do anything in response However, some are planning to leave the market, while others plan to move to a letting agent to help them manage their properties,” said the report.