Wannabe Landlords Warned It Isn’t Always As Easy Of It Looks

07 December 2012 Categories: News

Wannabe Landlords Warned It Isn’t Always As Easy Of It Looks

With rents continually rising and yields following suit it is no wonder that thousands of wannabe landlords consider investing in a buy to let property each month. But Alan Ward, chairman of ARLA, has warned potential and novice landlords that owning a rental property isn’t always simply a matter of collecting the rent at the end of the month. There are worries and legalities that go along with the job.

Mr Ward recently stressed that although new landlords can do very well in terms of financial security for the future, it is vital that they thoroughly research the industry, with its pros and cons, before investing. He also said that too many novice landlords are interested in nothing more than making a profit, but without proper preparation they were putting their entire investment at risk.

“We are finding that many of the people coming in are not prepared for the costs or for the legalities and responsibilities of owning a buy to let property” said Mr Ward.

“For example, what do you do if your tenant suddenly leaves and you must cover the mortgage on the property or you have to pay for emergency repairs? Do you have money set aside? These are questions that many people who are entering the market don’t seem even to have considered.”

With rental demand still outstripping supply in many areas of the country though it seems that novice landlords will continue to join the rank for the near future at least.