‘Grandlording’ is becoming increasingly popular in Hastings but it is not without its challenges, according to an insurance company.
Saga Insurance’s research shows nearly one in ten of the over 50s population in the town are becoming landlords – or ‘grandlords’ – and reaping the financial rewards.
On average over 50s estimate that they make £741 profit a month from letting a property.
However, success is not guaranteed as 11 per cent said they were just breaking even or making a loss.
Over a third of respondents became grandlords in the last five years and while some think being a landlord is tougher than they had expected (27 per cent), eight per cent said they found it easier than they expected.
This may be because only 44 per cent actually bought the property with the specific purpose of renting it out as one in seven inherited the property and five per cent purchased it for a child or grandchild to live in at university, who has since moved out.
The top concerns are renting the property out to bad tenants (37 per cent) and managing the property as you get older (20 per cent).
Perhaps people are right to have some worries as a previous Saga survey showed almost a third had experienced problems with tenants paying rent, a quarter had experienced damage to the property and 10 per cent had needed to take legal action against tenants.
Head of landlord and home insurance at Saga Sue Green said: “Buy-to-let is an increasingly popular investment for the over 50s, particularly in the current financial climate but clearly it is not without challenges.
“The recently announced cuts to tax relief for buy-to-let landlords, for example, are a new factor that people will have to take into account when deciding whether to start letting a property.
“Our research shows that, while landlords are largely positive about their decision, they are also likely to face practical and financial hurdles.
“This is why we have developed a guide that provides practical advice to grandlords, helping to address the most commonly raised concerns and giving them peace of mind so they can focus on enjoying their retirement.”
Saga has produced a guide to help people who are landlords or are thinking of becoming one.
The guide offers top tips on deciding whether grandlording is right for you, how to pick good tenants and when it is the right time to increase tenants rent.
For more information on Saga landlord insurance call 0800 302 9705 or for more information visit www.saga.co.uk/grandlord.
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