Nearly half of all landlords are in it for the long term
Nearly half of all landlords in the buy-to-let sector are over 45 and see their portfolio as a long-term retirement investment, estate agency network Your Move has found.
Nearly a quarter (23%) of this group, labelled ‘pension pot’ landlords, have been a landlord for 15 years or more. ‘accidental’ landlords – those who were not expecting to be landlords – were the second most common type of landlord (29%), followed closely by ‘professional’ landlords (20%).
Martyn Alderton, national lettings director, Your Move, said: “Our research suggests that the private rental sector is still seen to offer significant opportunities, providing many landlords with a source of income and funding into retirement.
“It’s also clear that ‘Pension Pot’ landlords are keen to build a personal rapport with tenants who will look after their investment.
“As an industry, it’s increasingly important that we continue to support these ties, providing long-term benefits to tenants looking for a property to call their home and also for landlords looking for ways to fund their retirement.”
Accidental landlords are most likely to be female and under the age of 45, often thrust into the market through inheritance or other changes in their personal circumstances.
Professional landlords, however, tend to be male, over 45 years old, and consider being a landlord as a job or career.
Pension pot landlords are more likely to live close to their rental properties than either ‘accidental’ or ‘professional’ landlords, with 41% living within one to five miles of the property.
Further, nearly three in 10 (29%) Pension pot landlords see their properties as a business, with over half (53%) investing in more than one property.
However, even though these landlords may be more investment minded, pension pot landlords are also more likely than the other groups to build a personal rapport with tenants and want tenants who will protect their investment.
In fact, 18% said they like to meet or talk to new tenants before signing a contract, which was the highest proportion of any group. Over half (53%) felt it was important that tenants view the property as their own home.