Smart-thinking homeowners are looking to ride out the credit crunch by letting their properties out rather than selling them, according to Edinburgh’s leading property management firm.
Braemore Property Management says that increasing numbers of people who have moved or who are soon to move and haven’t sold their original properties are now enquiring about becoming landlords, so they can cover the costs of owning two homes.
But the company adds that, by renting out their homes for a few years, these canny owners are sowing the seeds of the next property boom – as they will be able to sell them once the credit crunch disappears and the market stabilises.
Currently Braemore Property Management, which is based in Dundas Street and has a portfolio of more than 800 properties, estimates that one out of every three calls they are receiving are from people wanting information on becoming a landlord – so they can cover the costs of keeping their property and then selling it once the market improves.
Director Colette Murphy said: “We’re seeing more and more people contacting us for information about renting their homes and at least a third of these calls are coming from people who have had their properties on the market for a number of months but cannot sell them.
“Many of these people have already moved, having downsized or moved up the property ladder in the Capital, some have been relocated through their work or have just decided to leave Edinburgh but have been unable to sell their original home. Some are planning to relocate within the coming months and believe the prospects of selling their property at the price they wish to get are slim and are now considering renting.
“Although a lot of these calls do not result in people actually becoming landlords, it still shows that there are a large number of people who are considering the move and want to find out more.
“We’re also finding that we’re getting calls from people with properties ranging from tenement flats to family homes, so we’re getting interest from across the whole property spectrum.
“By enquiring about letting out their properties, these owners are actually being very forward thinking and are looking ahead to the time where the market will have fully recovered.
“They are effectively sowing the seeds of the next property boom in Edinburgh as, once the economic conditions have improved, they will be able to sell at a time when demand will be higher for homes and prices will rise as a result.”