The Rise of the Female Landlord 1st May 2017
For many years, the Private Rented Sector has largely been a male dominated environment. However recent research (Simple Landlords) shows this is rapidly becoming a thing of the past, with women now accounting for 2 in 5 landlords (40%).
The research looked at how male and female investors have different goals for their investments. 63% of female landlords said using rent for monthly income was their long-term business goal, as opposed to long term capital growth, compared with 53% of men.
Male landlords were more likely than women to have bought the property with the assistance of a buy to let mortgage. More women owned their rental property outright. 61% of men are deliberate investors compared to 48% of women.
Perhaps this relates to the fact that the research also found that women are more likely than men to have become ‘accidental landlords`. ‘Accidental landlords’ are landlords whose decision to rent out a property is as a result of circumstance, rather than design. Frequently this is because of a death in the family, and the new owner has inherited the property; it may be due to relocation; or often owners find their only option is to rent out the property as they cannot sell.
The same research found that women were more likely to become landlords after moving in with a partner and renting out their own property, or through purchasing a property for a family member to live in, such as a child attending university.
Female landlords were more likely to have a smaller portfolio of investment properties (1 to 2 properties) than men. Male landlords were more likely to have a larger portfolio of properties (3 to 10 + properties) than female landlords.
Female landlords are also likely to provide rented accommodation to a more diverse range of tenants than men. 35% of women said they would rent to tenants on housing benefit, compared with 25% of men. Women were also more open to renting to pensioners, students and single employed tenants.
The survey also asked tenants’ opinions on male and female landlords, with some interesting (and perhaps not surprising) results. When tenants move into rental properties, female landlords are more likely to speak to them than males, with the same happening when a tenant vacates. However in saying that there is a slightly greater % of women who never personally speak to their tenants in comparison with males (maybe they are the sensible ones who use a letting agent!).
The majority of tenants didn’t mind if their landlord was male or female. However, 15% of male tenants preferred a landlord that was male and 11% of females preferred a female landlord.
And as far as women are concerned, the buy to let investment glass is half full, with females demonstrating more confidence in their portfolios for the year ahead compared to their male counterparts.
The Key Place has in depth knowledge of the local markets in which we operate which can help inform your buy to let decisions. We also offer a full buy to let service. We can source high yield properties, help find the best mortgage, complete the acquisition and then manage your buy to let investment. Contact us now for further information.