An alarming number of small scale landlords, owning just a single rental property, who are experiencing increased void periods and growing rent arrears has doubled since the first quarter of 2012, according to research carried out by leading market research company, Business Development Research Consultants (BDRC Continental).
The results of the BDRC Continental survey show that 16% of single property landlords experienced increased void periods or growing rent arrears during the 2nd quarter of 2012, up from 8% in the first three months of 2012.
However, landlords with larger rental property portfolios are making healthy profits from the Private Rental Sector (PRS) as they maximise rental yields and take positive action to ensure a regular financial income, whilst keeping tenants happy.
Director of BDRC Continental, Mark Long, commented: “It is a tough time to be a private landlord if you have only one property in your portfolio. Over the last quarter, profitability has clearly taken a dive. Regardless of their size, there is no question the private rental sector relies on private landlords and, whilst a third may aspire to increase their property portfolio, they will only be able to achieve this goal and add to Britain’s privately rented housing stock if they can make a profit from that one property.”
Getting the best from property investment could be so much easier for the minority of small scale landlords if they would just educate themselves and take advantage of the specialist products and services developed to help them profit from property, such as Tenant Referencing, Rent Guarantee Insurance and specialist Landlord Insurance policies.