Reluctant landlords who have turned to the rental market after failing to sell their properties should consider applying for HMO licences, according to Edinburgh’s leading letting agent.
Braemore Property Management believes that, as there is a shortage of traditional student accommodation in the Capital, new landlords entering the rental market should look to secure an HMO licence in order to rent out their properties to undergraduates.
The firm says that there has been an increase in the number of larger houses and flats coming onto the rental market in recent months, as their owners have been unable to sell them. As the majority of these people are looking to sell up once the economic conditions improve, they do not want the extra expense of applying for an HMO licence.
But Braemore highlights that, as students are reliable tenants who are willing to sign 12-month long leases, applying for an HMO licence is a wise move if landlords want to ensure their properties are let out.
Colette Murphy, director of Braemore Property Management, said: “For landlords who plan to keep their property on the rental market for the next few years and whose property is in the right location, a student let could be a good way of generating income.
“Undergraduates in their second or third year are generally reliable, responsible, sign up to 12 month tenancies and have UK-based guarantors. Student tenants are also prepared to pay a good rent level for the right place.
“In recent months we have seen a lot of activity from reluctant landlords – people who have bought a new home but have been forced to rent out their old property after failing to sell it. But, despite this increase in properties coming onto the market, there is still a shortage of traditional student flats that have HMO legislation. Therefore, we’re seeing students planning many months ahead to secure their desired accommodation.
“Those people who have put, or are looking to put, a larger property on the market should consider applying for an HMO licence and be open to the idea of having student tenants. As long as their property is in right location it could be very desirable to students looking for a home for the next academic year.”
Notes to editors:
Braemore Property Management, based in Dundas Street, is one of Edinburgh’s leading letting agents and boasts a portfolio of 850 properties in the Capital worth more than £250 million.