Risk-free leases
As the recession truly takes grips with reports yesterday being released by the Governments think tank, The National Institute of Economic and Social Research, predicting that the UK economy will not fully cover until 2014, the housing sector takes another knock.
This factor can be no-more apparent than in the buy-to-let property market, as in the USA where the economic bust decline is still raging, landlords are beginning to offer protection plans to tenants who cannot guarantee employment for a full 12 month lease.
Landlords across the states have been offering new initiatives to attract tenants, like free Wifi and even stooping to free rent; now the no-risk leases offer tenants the chance to move out with no lasting cancellation charges or binding rent packages.
Many tenants welcome the new form of lease as workers are more mobile to migrate to where there is work, although some sceptics worry that this will see an increase in a transient workforce. There is also the concern that due to the short term leases, tenants will take less care of property they are inhabiting.
It also seems an advantageous step for landlords as well, as gaining any rent revenue is better than none at all. Plus the ability to move out unemployed tenants may increase the chances of re-homing employed renters.
We wait to see if British landlords take the plunge and follow the example of US let property owners, which would provide much to the relief of students, unemployed and migratory tenants across the country.
Insure My Let Property provides let property insurance for home owners on a short term scale providing the added bonus of extra optional cover for unoccupied buildings.
July 24th 2009
- Buy-to-let landlords benefit from growing sales sector
- Buy-to-let property on the rise
- Rents stabilise while buy-to-let prices rise
- Rent falls as supply rises
- Buy-to-let sector reliant on future outlook
- Licence taken from landlord due to unfit property
- Buy-to-let investors are mainly British
- Landlords must have sufficient Let Property Insurance
- Funding that is designed to reduce the risks of buy to let
- Rent prices continue to fall