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The private rented sector 'is not easy'

27th January 2012

Those people who are thinking about entering the private rented sector have been told that good returns are far from guaranteed.

Many individuals who are struggling to sell their house due to a lack of first-time buyers may be considering purchasing freeholders insurance and converting their property into flats until value returns to the property market.

However, David Lawrenson, private rented sector expert at LettingFocus.com, said there are plenty of obstacles to successfully letting a property.

"It is probably a good idea to use an ARLA (Association of Residential Letting Agents) letting agent – they are usually quite good and you have got some protection. It is not easy letting property," he stated.

Freeholder insurance will afford landlords some level of financial protection against most unexpected dangers that can occur to their property, but Mr Lawrenson said that it was "tenants from hell" that could make life really unpleasant for the experienced.

He explained that when those staying in a building refuse to pay their rent, a landlord needs to know their legal responsibilities, rights and obligations.

Those who choose to take the plunge into the private rented sector must also be aware of the other official duties that they have, such as making sure a property is well maintained and having regular gas safety checks carried out.

His comments came after Tom Entwistle, editor and founder at LandlordZONE.co.uk, expressed similar sentiments.

Mr Entwistle said that letting is a growing market and those who enter it for the first time must look for all the help that they can get.

He called on the government to aid new landlords by refraining from making new regulations and instead focus its efforts on helping local authorities enforce the ones that are already in existence.

"Problems arise and give landlords a bad name because rogue landlords are allowed to get away with murder," Mr Lawrenson added.