If you are a landlord, you likely have a great idea of what tenants you wish to let to. However, it may be there is a group of tenants who are in your area you haven’t considered. If this is the case, you should re-evaluate your options, because this previously unconsidered market may be the one that is best for you.
We are pleased to say we have helped many Dunedin landlords reach their tenants, and let their home successfully. Something we have experienced in the local area, which is also backed up with national figures, is the increasing number of people who are aged 60 and over who are turning to the private rental sector.
All tenants need a helping hand, and so do landlords
A recent study by Ome has shone a light on this group, and they point out that this demographic has a problem with private renting that many other groups also experience. A lot of tenants are facing challenges in affording the initial deposit that needs to be paid to secure rental property.
Even though the Tenant Fees Act has placed a cap on the security deposit a landlord can charge, many tenants face challenges in raising the funds required to move into private rental property.
The organisation lists the average rental deposit as £1,139; which is a lot of money. People in their golden years who don’t have savings to fall back on will struggle to pay this amount of money upfront, just as people of any age would.
The cost of rental deposit is challenging
However, with the average salary for people aged 60 and over being less than the average wage across the board, this demographic face additional challenges. The average male faces a deposit cost which is close to half of a month’s wages, while for females it is 69%. For people aged 60 or over, the deposit becomes 68% of the average net salary. Females aged 60 or over are further penalised, as the deposit equates to 68% of the average net salary.
Matthew Hooker is the co-founder of Ome, and he said; “Those in the youngest age groups tend to be on the lowest wages and as a result, have to pay out more of their monthly wage on a deposit, but more often than not they have a support network of family that can help them start out on their rental journey and contribute to some of the costs. However, this isn’t always the case for those 60 and above who may be on a lower wage and don’t have the option to borrow from friends or family.”
If you are a Rubery landlord looking to know your market and audience in 2020, get in touch with Dunedin Sales & Lettings, and we will be more than happy to assist you. We can arrange a property valuation for you, which is essential if you wish to enter the market in the most effective manner.