WOULD you consider becoming a “Parent Landlord’
The number of so-called “parent landlords’ is set to rise as increasing numbers of baby boomers use buy to let as a way to provide low-cost accommodation when their children grow up.
Research by Post Office Money shows that some 730,000 parents are already letting properties to their children, with an estimated 10 per cent not charging any rent and the vast majority charging below market rent levels. The majority of the parents feel letting at sub-market rates will allow their children to save for deposits for their own homes.?
Around a quarter of the parent landlords want to sell the property in future to fund their own later lives.
However, being a “parent landlord’ doesn’t come without its drawbacks. Some 30 per cent of parents questioned worry about clashes regarding rent, while a quarter?question how well their child will take care of the property – and 19 per cent worry about the home being used to host parties with friends. I feel the answer to this would be to treat it as a business and let a professional agent manage the property for you. That way, you can help your children but let the agent manage the way the property is being used. It would also help if unwanted friends moved in and took advantage of the situation.
If you would like more information about letting, selling or property investment, call Chelton Brown on 01604 603433.