Landlord's Specificity
Landlord's Specificity
Studies show landlords are becoming more specific when
choosing their tenant, but why?
Usually landlords let to a mixture of different tenants
throughout the course of their time in the industry, especially if they own
multiple properties. But recently that is starting to change into a preference
for a specific type of tenant. Over the last four years, the proportion of
landlords letting to different tenant type has fallen. These tenant types vary
from young professionals to families to retirees and everything in between.
The new phenomena being that landlords are starting to ‘’specialise’’ in a specific tenant is possibly perplexing because if it seems that rent is being paid on time and the property is being cared for, then why does a person’s profession or age group matter? It’s arguable that it could come down to profit maximisation. If you know a specific tenant market well enough, it will be easier to form lasting relationships and lead to more profitability. Despite the fact that most people who become a landlord do so in order to generate a profit, 17 percent (about 255,000) of landlords barely break even. And that figure increases to 25% for people that operate a single property.
