What sort of landlord are you?

May 20, 2012

Landlords Insurance

This is not just a question of trying to place you into an artificial category for the sake of it!

It might be important to understand where you are in the marketplace and where you wish to be, as that may affect things such as your strategic direction and the amounts of money that you may need in order to be successful.

Accidental versus professional landlords

This is an interesting, though in some respects, slightly artificial distinction.

It reflects the fact that some people become landlords because it is their chosen business direction whereas others drift into becoming a landlord due to the fact that they have inherited a property that they find difficult to sell (or because they are unable to sell their own property and wish to obtain income from it).

If you are an accidental landlord it might, for example, pay to think carefully before simply drifting further into this area through the acquisition of additional rental property.

You may need to ask whether you have really thought through all the issues associated with making this a major enterprise direction and whether you will have the time and dedication to make it a success.

Whichever category you come into, remember that landlords insurance and a let property insurance quote, may be obligatory if you are to maintain cover on your property.

Your target marketplace

Different landlords have different properties and different strategies relating to the segment they market their properties to.

For example, if you have a property that is extremely well furnished and equipped (or that you are willing to convert to such status) you may wish to target the top-end market segment of young professionals or high net worth individuals.

If you wish to avoid this particularly competitive segment that may be restricted to city centres, you may wish to consider the educational sector of students and sometimes college staff etc. Rates may be lower but you may be able to avoid expensive renovations and conversions. (You may wish to bear in mind though that student letting may be linked to the academic year so you may have void periods over the long summer holiday.)

Benefit recipients are another sector that may offer good opportunities in terms of occupancy statistics but letting prices may be lower.

You may also wish to target working people that need rental accommodation, as a segment that may offer a useful middle ground between young professionals and students etc.

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