“What
does the ideal Gloucester tenant look like?”, asked one of my landlords
from Longlevens the other day, to which he carried on before I could reply, “Let me guess, a professional couple, both in
their 30’s, flawlessly tidy, pays their rent early, doesn’t complain or make a fuss,
who has no plans to move and cheerfully accepts annual rent rises”.
Before I can answer that question properly, I
have always believed all a landlord wants (and expects) of their tenants is to
pay their rent on time and look after the property as if it were their own. In
return, the landlord should provide a property that is warm, clean, modern and sort any issues (such as repairs) quickly and without fuss.
Back to the tenants – tenants tend to fall
into several groups ... 20 something professionals; young and middle aged families;
corporate tenants, (i.e.their employer finds their employee a house to live in); students;
older singles/couples and housing benefit claimants – and they come with different
needs and wants. So choosing who best suits your Gloucester property – and steering
clear of bad tenants – is a big factor in making property investment a success.
One topic that I am often asked is should
they, as a landlord, accept tenants on housing benefit?
It might
interest the landlords of Gloucester that of the 8,012 private rented
properties in the local council area, 50.5% of the tenants of those properties are
on some form of housing benefit.
4,053 properties to be exact. I know some landlords have suffered late rent payments with tenants on benefit, especially
since 2008, when local authorities started paying housing benefit to tenants
rather than directly to the landlords, but you can’t ignore the fact that housing
benefit tenants make up a significant proportion of the Gloucester rental
population. My opinion is that the final choice of accepting such tenants has
to be the landlords but you can’t tar every tenant with the same brush. As a letting agent, we have had numerous long term tenants who claim housing benefit and are excellent tenants. Over the years we have had very few bad tenants and some of those were highly paid professional.
Interestingly, it might surprise some readers
of the Gloucester Property Blog, when we compare Gloucester to the national
picture, Gloucester’s Housing benefit claimants are higher, as nationally a lower
proportion of private tenants claim the benefit. Nationally, 39.2% of the tenants
of the 3,891,467 rental properties in Great Britain claim some form of housing
benefit (ie 1,526,915 properties).
Now, let us look at the occupations of Gloucester
tenants, which makes even more fascinating reading. Of the 8,012 privately
rented properties in the Gloucester area, 6,206 head tenants (the head tenant being classified as the head
of the household) are in employment (the other 1,806 rental property head
tenants either being retired, long term sick, students or job seekers).
Splitting those 6,206 head tenants down into
their relevant professions, 1,880 of them are Managers, Directors, Senior
Officials, Professional or Technical Professions, 547 in Administrative and
secretarial occupations, 777 in Skilled Trades, 714 in the Caring, Leisure and
other service occupations, 539 Sales and Customer Service Occupations, 751
Process, Plant and Machine Operatives and finally, 997 in Elementary
Occupations.
The one thing I have always known
anecdotally, but until I did my research, never had anything to back it up
with, was the high proportion of professionals and skilled trades renting
property in Gloucester – intriguing! Maybe in future articles, I will look
deeper into the corporate tenant market, young and middle aged families, students
and older persons rental markets.... but in the meantime, if you want more
news, views and commentary about the Gloucester property market, there are many
similar articles like this on the Gloucester Property Blog.
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