If you’re a BTL landlord worried about inflation, you’re likely to be in the majority. Research findings on inflation-related concerns by GetGround back in March, suggested that around 83% of UK landlords were significantly concerned about rising costs and their ability to invest profitably moving forwards.
With experts having forecasted inflation at around that time to rise above 8% – it’s now expected to exceed 11%. Riding out the storm as a landlord however means acting sooner rather than later…
Concerns intensify as costs continue to rise
There’s no doubt about it, the immediate future does look bleak. With the cost-of-living set to increase dramatically, financial distress is at an all time high. Rising inflation, energy bills and food costs have already caused families across the UK to tighten their budgets.
Come October when the next increase in energy bills hit, it is only going to become more of a struggle for many to live within their means. Especially with wages predominantly stagnated.
Clearly, it’s the low-income households that will be hit the hardest in relation to being able to survive these turbulent times.
Are you a landlord worried about inflation but concerned for your tenants too?
If you can afford to (and feel a social responsibility) as a landlord to keep your rental costs lower to help those who are struggling, then you should. You might have a personal relationship with your tenants. This can make things extremely uncomfortable. If you are that way inclined though – and are not short of money; doing the right thing could make a huge difference to someone’s circumstances. Even if you agree to them paying more once they are able to.
The likelihood is, however, that as outlined in the beginning: you are worried yourself. In which case, it’s far better off to hand your properties over to professionals, so that you don’t have to deal with the emotional aspect of this. The situation is what it is. If you are worried for yourself and perhaps your own family, then it makes sense to take the most logical route.
There are multiple resources in place to protect tenants and lower income families. Clearly not enough – as we still have working people visiting foodbanks. And whilst you can’t untangle these things, you can’t fix them either.
You’ll know that as a landlord, you are often unfairly demonised. There’s unfortunately not a lot of support for you. The odds are increasingly stacked against BTL landlords.
However, with rental accommodation scarce, rent can only (along with other costs) go up. You will still benefit from positive growth by investing in the right place and choosing the right agent.
The main question you will be asking under the current circumstances, of course, is ‘can my tenant pay their rent on time’?
The Advanced Rent Option
There is a fool-proof solution at hand if you are a landlord worried about inflation (and associated consequences). At Choices Estate Agents, we offer all our landlords the option of taking their guaranteed, full market rent a year in advance. We offer this at no extra cost outside of standard fees. Calculate how much you would get here.
You need first class management now more than ever. Having that one lump sum eliminates the need for you to worry. Taken with our rent guarantee, if the tenant can’t pay; you don’t have to pay anything back. Inflation is much less of a worry if you act now. With ARO, you get it all, and you get it now.
Here to help you make the right choices
Tenant well-being is just as important to us as having you use our services. We want tenants to have safe and compliant properties to live in. We want you to get the best ROI, provide you with first-class property management, eliminate the need for contact with tenants – and give you all that money upfront, so you don’t need to worry. Our rent guarantee also covers up to £5,000 of legal costs – and we go to court on your behalf where necessary. Get in touch here. 🙂