Private rented sector markets and the relevant standards
When deciding to let you should consider what market you want to enter. Broadly speaking there are four PRS markets:
- Renting to people on benefits
- Renting to students
- Renting to working tenants
- Renting to professionals & higher end market
The type of property you own and its location may determine the market you aim for. Different markets will command different rent levels and will require different standards of letting. Some of the issues that you might like to consider are:
- Professionals will insist on higher standards and will expect showers and possibly en suite facilities
- Renters claiming housing benefits, whilst commanding a lower rent, are likely to be more stable renters – young professionals tend to be more mobile and may lead to higher voids and increased re-letting expenses
- Renting to students sees higher occupancy rates which can maximise income; however they may not fully understand their responsibilities and may not look after the property as you would wish. Renting to students is also likely to bring with it regulation pertaining to Houses in Multiple Occupation (HMOs) and licensing
- Student lets may not extend for a full year
- All renters will expect a high level of customer care from landlords with expectations generally rising in line with the amount of rent paid
If you propose to let a mortgaged property, or a room within it, you will require permission from the mortgage lender.
If the property is subject to a long lease, permission may also be required from the freeholder before renting. This will be determined by the terms of the lease. Where these are not clear it is advisable to seek assistance from a lawyer or the local Housing Advice service.
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