guaranteed rent – Room by room will be the preserve of property owners in 2012
Increased numbers of property owners will begin to rent out their properties on a room by room basis during 2012, according to a director at SpareRoom.
Matt Hutchinson believes that this year will see the development of the room by room trend because of the increased yields available by splitting properties up in this manner.
Also, the housing benefit changes will mean tenants will increasingly look to rent single rooms rather than whole properties.
He stated that while the effort and regulation involved in renting out each individual room separately was undoubtedly more than renting a flat out, commercial property insurance aside, it was worth it in terms of returns.
guaranteed rent
Mr Hutchinson said: “It is more work to rent out by the room and it is more effort, but the yields are generally higher.
“The [housing benefit] changes which are coming will mean that a lot more people are looking to rent rooms because they are only getting enough benefits to cover a room.â€
easyroommate.co.uk reported recently that the average number of potential tenants competing for each rental room on the market is now 3.4 – down from 4.1 in the height of the 2011 summer market.
Source: http://www.stride.co.uk/insurance-news-and-articles/latest-insurance-news/room-by-room-will-be-the-preserve-of-property-owners-in-2012/801256473/
Why sell when you can get a guaranteed rent?