Is now the time to become a landlord?

For tenants, this situation may cause some significant challenges. With a limited supply of rental properties compared tothe growing number of potential renters, the rental market is becoming increasingly competitive, posing challenges for young renters in search of suitable accommodation.

For landlords, and potential landlords, however; the situation may present some interesting opportunities for portfolio expansion.

Less time unoccupied

Due to increased rental property demand, landlords can benefit from reduced vacancy periods. This means that properties are more likely to be rented out quickly, minimising the duration of unoccupied periods, reducing profit loss.

Higher quality tenants

The increasing rental property demand grants landlords the opportunity to be more selective when choosing tenants. Landlordscan thoroughly evaluate potential renters, opting for individuals with outstanding rental records, stable incomes, and responsible conduct. By handpicking reliable tenants, landlords can mitigate the risks associated with property damage and unpaid rent, thereby fostering a more seamless and financially rewarding rental experience which hopefully will attract high quality long term renters.

Increased Rental Prices

The increasing demand in the rental market creates a competitive environment, giving landlords the ability to set higher rental prices. As the demand exceeds the supply, landlords have the leverage to align rental rates with market conditions and protect ROI.

Expanded Profit Margins

Reduced vacancy periods and increased rental prices will inevitably lead to widened profit margins for landlords. By minimising time that properties are left unoccupied and optimising rental prices, landlords can improve their return on their investments.

Through diligent management and adjustment to market trends, there’s now plenty of opportunity for landlords to flourish in the rental market through 2023.

Additionally, entering the market as a landlord will not only be profitable for the individual, it will make you part of the solution to the UK’s housing crisis. As more landlords enter the market, the supply and demand imbalance is likely to stabilise, resulting in positive future outcomes for tenants.