1 minute read
BUSINESS OF BTL
Words by Andreea Dulgheru
Knowing your market
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Adrian believes that certain benefits come with this, one of the biggest being the greater level of knowledge and experience that professional landlords hold. “That’s not to say there aren’t good part-time landlords out there, but what you find with a professional one—and certainly we do—is that they know their market,” explains Adrian. “Our HNW team, which looks after our larger landlords with multimillion-pound loans, engages with these borrowers constantly, so we get to see and review their property stories. They have very few rental voids because they know the market and their tenants so well.”
As they depend on their BTL portfolio for a living, Adrian strongly believes that professional landlords actively educate themselves about changes in the sector. On top of this, he notes that they are more engaged with their brokers and lenders. “Most successful landlords have a strong relationship with their brokers when it comes to looking at what’s happening with interest rates and lenders’ criteria changes. They establish relationships with these experts to make sure they’re fully aware of what’s coming down the line and what might affect their portfolios and rental income because, for a large number of these applicants, this is their livelihood.”
What also makes this type of investor stand out is their dedication to providing accommodation of a high standard— something which tenants have been increasingly demanding for. Some 29% of professional landlords say they are driven by the impact they will have on the lives of their tenants and those around them, according to the OSB Group report. “Professional landlords enjoy a high degree of tenant loyalty, as they have that embedded relationship,” states Adrian, adding that professional landlords are able to swiftly handle any issues with their property or tenants, such as repairing or upgrading their rental homes, or having been able to allow temporary rent discounts or holidays during the pandemic to support struggling tenants.
