Landlords enjoying security of longer lets

Letting specialists, Leaders, claim that landlord insurance customers are enjoying the security of longer and longer lets.

The agency says that this increase in tenants signing up for longer leases is good news for anyone who feels they may want to join the vast numbers of buy-to-let landlords out there. It seems letting out a property in the South is proving to be a great long-term investment scheme at the moment and offers better return on investment than, for example, a savings account or bond.

The letting agency claims that the longer leases are a result of the perception that there are fewer properties on the rental market. As a result, tenants are opting to renew their agreements instead of moving on to a new property.

Paul Weller, the managing director of Leaders, said that the continuing uncertainty about the economy and the housing market is leading many more tenants to extend their existing tenancy agreements. He says they are taking a ‘wait and see’ approach.

The agency’s claims come from reports from its branches that more tenants are now opting for 12-month contracts over six month contracts. It adds that the average tenancy has now increased to 14 months, with lots of tenants opting to extend past the 12-month point.

Weller went on to say, "There are huge opportunities right now for landlords looking to invest or increase their portfolios in all the areas we cover." He recommends ensuring properties are of good quality with neutral decor and well fitted bathrooms and kitchens. He says these types of properties are usually snapped up within hours by eager tenants ready to sign a year’s contract.

Despite the news of greater security, landlords will be wise to ensure they have rent guarantee insurance, which will protect their income and ensure they will be able to meet their buy-to-let mortgage repayments whatever happens. Discount Landlord Insurance at www.discountlandlord.com offers this as a standard part of its landlord cover.