The UK is seeing a surge in part-time landlords according to research from insurance company LV. The survey found that 7% of adults in the UK now rent out a property as another source of income alongside their current salary.
The average monthly rental rate comes to £678 totalling £28bn a year. The recent increase in the number of rental properties could be due to current home owners being unable to sell their properties or those looking for high yielding property investment.
The research also found that of those part-time landlords 55% were renting out property that they didn’t intend to, which has raised some concern among property experts.
John O’Roakre, managing director of LV commented, “Landlords not only need cover for any damage to their property but they also need to think about their tenants and how they will house them if the property becomes uninhabitable, as well as the lost rental income.”
As a large percentage of landlords in the UK are considered accidental they are often unaware of the regulations that they need to adhere to. For example electrical and gas equipment must be checked annually and it is the landlords responsibility to ensure this is carried out however 27% of accidental landlords haven’t had a gas safety check in the past 12 months, which could see them paying fines up to £20,000.
If a home owner wishes to rent out their property they must check their mortgage agreement, often the lender will require that a change in mortgage is made when renting out the property, it is important that property owners check their agreement to ensure that they are not racking up large debts due to not being aware of the changes needed.
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