Share this page:
Stay connected:
Welcome to the Citywire Money Forums, where members share investment ideas and discuss everything to do with their money.

You'll need to log in or set up an account to start new discussions or reply to existing ones. See you inside!

Notification

Icon
Error

What is a Professional Landlord?
Anonymous Post
Posted: 20 October 2011 12:57:01(UTC)
#1
Anonymous 1 needed this 'Off the Record'

What characteristics would you use to define a Professional Landlord?

Some commentators may argue that making their living from letting properties makes them a professional landlord. Personally I don't think that this is enough. To my mind, there is nothing professional about someone who has several high loan to value properties who's rent just covers the bare-bone basics (I believe this is widespread and the sorry state of many rental properties is the symptom of this). These are the get quick-rich landlords of the Property Ladder era.

So how would you define a professional landlord? A landlord (or acting agent) that will outlast the rough and tumble from recessions to burglaries and burst pipes. I would suggest the following parameters:

Average equity across all their properties: 40%.
Rental cover: 4 months each for 1-2 houses, 3 months for 3-4, 2 months for 5 or more.
Resolution of maintenance: Max. 2 working weeks from notification to close (i.e. washing machine repair)
Emergency repair fund: 2% of property portfolio

I believe someone set up in a manner like this would be worthy of being treated like a business. Any other parameters people want to add? Somekind of mechanism to protect from interest rate spikes would also be good. Can we all come to a definition of professional landlord I wonder??

All comments welcome!
Anonymous Post
Posted: 20 October 2011 14:09:41(UTC)
#2
Anonymous 2 needed this 'Off the Record'

A professional is someone that makes their living from what they do. So a professional landlord is simply somebody that makes their living from being a landlord.

Whether they always act professionally is a different question....
Anonymous Post
Posted: 20 October 2011 14:54:58(UTC)
#3
Anonymous 1 needed this 'Off the Record'

Agreed with the sentiment in the second paragraph. I've found it is generally the letting agent who gives terrible service but as long as they pass on the rent on time, I don't think the landlords care.

As indicated above, I don't think we see eye to eye on what constitutes a professional. I suppose you could argue we have professional road sweepers and toilet cleaners but I don't think that would be generally accepted in the public imagination!
Amelia Brown
Posted: 29 December 2012 07:58:57(UTC)
#4

Joined: 14/12/2012(UTC)
Posts: 14

Rather being a professional landlord it is good to have a tenant in your home because it really doesn't matter how you behave with your tenant, the fact is that your home should be acquired.Many landlords take real estate property management for funding. Demand of places to rent in London is also increasing rapidly; many landowners are now providing professional management services to buyers to fulfil the expectations of tenants.

Here are five important things for property management services:

1. Services and Fees
2. Responsibilities of the Property Owner
3. Equal Housing Opportunity
4. Liability
5. Contract Duration
+ Reply to discussion

Markets

Other markets