There is huge potential for landlords looking to target the under-35s, as an increasing number of young professionals are choosing to rent property rather than buy.

There is huge potential for landlords looking to target the under-35s, as an increasing number of young professionals are choosing to rent property rather than buy.

Renting Rights

In fact, research conducted by finance company LV revealed that more than half of those aged under 35 – some 52 per cent – are living in rented accommodation. Add to this the fact that 42 per cent are planning to rent over the next decade and it is easy to see the potential for profit in this segment.

Why the shift?

It seems there is no longer a stigma attached to renting. Some 70 per cent of those polled by LV disagreed with the idea that not owning your own home was shameful. This kind of thinking belongs to a different generation. The poll revealed that 93 per cent of people aged between 55 and 75 wanted to own their flat or house when they were under 35.

The younger generation like the idea of having more freedom, and 17 per cent of those questioned said they enjoyed renting because it meant they could move on without much notice.

Some 13 per cent of those questioned said they were using renting as a way to check out an area before committing to buying there.

Clearly some young people are not ready to settle down, as seven per cent said they would rather splash the cash on themselves rather than invest in a property.

Landlords will no doubt be pleased to hear that ten per cent of respondents said they didnt want to buy a home at all, although they may well change their mind as they get older.

Mark Jones, head of protection at LV, said that young people are making an active choice to rent, rather than being forced to do so.

“While previous research has suggested that young adults have had renting forced upon them by rising property prices and low mortgage availability, this report shows that huge numbers of young men and women are freely choosing tenancy and actually prefer it to ownership,” he said.

Understanding the market

The key to appealing to the under-35s – as with any segment of society – is to understand their wants and needs.

On average, tenants aged under 35 spend 40 per cent of their wages on rent, so they will be looking for somewhere smart and comfortable to live.

Furnished properties are appealing to young professionals, which is a great market to get into as the returns can be considerable.

Anyone thinking of providing a property with furniture should check out websites with information on professional landlords insurance, as it always pays to be covered in case of accidental damage.

It is also worth considering that two-thirds of renters in this age bracket do not have protection to cover them if they lose their job and cant pay their rent. This is when it makes sense for landlords to be insured.

Make checks to ensure highest calibre tenants

Although it is nice to think that everyone is honest, the truth is often far from it, so it is important to make checks prior to taking someone on as a tenant.

Landlords should always ask for three months of payslips to serve as proof that a prospective tenant is in employment.

Although this is a good indicator, it also always pays to get references from both current and previous employers, as well as previous landlords.

Likewise, carrying out credit checks will save headaches further down the line.

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