Letting to pet owners in light of the tenant fees ban and new 5 week deposit protection rulesMake Text Bigger
I have been reading several Facebook Group discussions about letting to pet owners in light of the tenants fees ban and new deposit protection rules capping the maximum amount of deposit to five weeks rents.
The general consensus is that landlords no longer wish to service this market, but to me, this = OPPORTUNITY.
When there are even less landlords than there are now who are willing to let to pet owners, then demand will intensify, so why would I ‘follow the herd’?
If I have properties which are appropriate to let to pet owners, then I will go the other way completely and actually advertise them as such. In my experience, pet owners tend to stay in a property for longer. Perhaps because it is difficult for them to find somewhere else to move to?
I appreciate that at face value it’s a bigger risk, but I also plan to advertise NO DEPOSIT REQUIRED.
That should get the phones ringing!
I might even go so far as to offer a five year Deed of Assurance.
At this point you might be thinking ‘this guy has lost the plot’, but I have given this opportunity a fair amount of thought.
Over the last few years I have been testing insurance based alternatives to taking deposits. My letting agents have sourced a policy which costs less than a few hundred pounds but provides significantly more protection than actually taking a deposit, thousands of £ more in fact. Very simply, my risk is mitigated by passing it on to the insurance company.
Naturally, the insurers will not want to take big risks either, so just like they do with Rent Guarantee and Legal Fees Protection Insurance (which I’m also a fan of at just £10 a month), the insurers tenant referencing is very robust. In short, if the insurers are happy to take on the risks then why wouldn’t I let them?
The advantage of thinking outside of the box, and servicing large chunks of the market which are avoided by other landlords, is that I can charge premium rents. Anything I can do to increase demand for my properties also increases the rent I can charge and the ability to be choosy about the people I decide to rent my properties to.
Best of all, I can still deal with all of this from one of the Southern most Countries in Europe (I reside in Malta). The reason is that I have such a good letting agent back in the UK. That agent is LettingSupermarket.com.
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