Rent your property or rooms to survive through recession

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Renting the property or rooms is a good way to earn some income during the recession. Research has shown that almost 5 million homeowners have considered renting their home or rooms out to survive through the economic downturn.

The current economic climate has certainly affected the UK property market. As the house prices have fallen significantly in the past year, nearly 5 million homeowners have revealed that they would consider being “reluctant landlords” renting out their house or room for extra money. It has also been recorded that a third of this group considered renting out their property to avoid making a loss for sale in this current market situation.

Research illustrated those 280,000 homeowners considered renting their properties or rooms out because they cannot find a buyer. National Landlords Association (NLA) estimated that 43% of landlords came into the residential letting market unintentionally.

Particularly, the younger homeowners have been hit the hardest by this matter, as reflected in a research by About 25% of homeowners aged 18 – 34 have thought about renting out their home or part of their properties, while nearly 400,000 under the same age group have already taken in a lodger. At the same time, homeowners in London have been recorded as the most likely to take up tenants, comparing to the other regional groups. 190,000 of the Londoners tend to earn additional income by taking in tenants to their properties.

Advice to “reluctant” landlords

If you have become “reluctant” or “accidental” landlords due to the economy, there are a few things you need to remember to do as a landlord. Firstly, do not forget your insurance. You have to be noted that home insurance is different from landlords insurance. You should get correct landlords insurance to safeguard yourself as well as to cover your rented properties. Also, you should take a full tenant referencing in order to protect you from “destructive” tenants.

Other than that, the Government has just put forward a proposal on the property buy-to-let market in a Green Paper. If you have to become a landlord in the UK, you have to register your address, rented property and your name with an independent body set up by the Government with a small administration fee. The proposal has also suggested that all tenancy agreements should be produced in a written format.

Get a let property insurance quote today from Discount Landlord Insurance.

18th May 2009