An investigation has revealed that for landlords aged over 50, around 10% of them do not make any profit whatsoever from their rental property investment.
The findings come from Saga Landlord Insurance who say that many landlords have gained ‘substantial’ financial awards since entering the UK’s private rental sector though another 25% said they had found being a landlord more difficult than they had anticipated.
The firm interviewed more than 10,000 landlords over 55 and found that nearly 10% are making the most of their opportunity in the buy to let market. They also rated highly for their optimism of the market’s future.
The survey also revealed that the average income per month for a landlord is £700 with one in 10 saying they were running at a loss or just breaking even.
One third of those responding said they had entered the buy to let market since 2010 and 10% said that the job of running the business was easier than they had expected.
Bought their property to rent out
One reason given by Saga for this response is that 45% of those asked said they had specifically bought their property to rent it out.
Another 14% said they had inherited their rental property with 7% of landlords saying they had bought the property for a relative or family member to live in.
The landlords questioned also admitted to having daily worries and concerns which included having bad tenants rent the property, a concern for 36%, and having to manage the property when they were older, 19%.
A recent survey from Saga also revealed that nearly a third of landlords had experienced their tenants not paying rent on time, around one in four had to deal with property damage and 11% were taking legal action against tenants.
The head of Saga’s landlord insurance, Sue Green, said: “For the over 50s, buy to let is a popular investment and it’s not without charges. The proposed cuts to buy to let landlord’s tax relief is another factor that those looking to start letting property will need to take into account.
“The research shows that landlords are largely positive but they face financial and practical hurdles and it’s why we have a guide to provide practical advice to help landlords address commonly raised concerns and bring peace of mind to enjoy their retirement.”
Landlords’ association reveals surge in membership
Meanwhile, the growing popularity of renting property in the UK has been reflected with news that the Residential Landlords’ Association (RLA) has seen its membership soar past 20,000.
Formed in 1998, it was the first national association for the UK and the portfolio of members now stands at more than 250,000 properties.
The RLA represents its members in England and Wales and offers training and advice for landlords, discounted services and tenancy management software.
