Landlords Offer 'Lavish Extras' To Attract Foreign Tenants
With falling tenant demand from overseas and post-Brexit worries, one organisation says that landlords are increasingly going 'above and beyond' in a bid to attract new tenants from overseas.
According to the National Landlords' Association (NLA), growing numbers of landlords are offering lavish extras including buying Christmas gifts and offering to ferry tenants and foreign students to and from nearby airports.
Along with uncertainty over the residency rules for EU nationals in the UK, there are also worries over international student funding.
There are also fears that the Right to Rent regulations may also impact on whether landlords have to check their potential tenant for their right to live in the country. Not doing so means the landlord faces up to five years in prison or a fine of £3,000.
Foreign workers have generated the highest rental yields
The NLA says international students and foreign workers have generated the highest rental yields in the past for landlords and a decline in numbers will damage rental profits.
The NLA's chief executive, Richard Lambert, said: "Suppliers have, in a buyer's market, no choice but to find other ways of making their offering more attractive.
"Whether that is delivering Christmas gift baskets or for other religious holidays, offering to install fibre-optic broadband or managing their property bills as part of the agreement - a landlord has lots of options.
"Landlords will be more successful, ultimately, by having an open dialogue with tenants and keeping in regular touch to ensure that the tenant knows what they need."
Landlords boost local economies by £3.6bn
The level of investment that landlords are boosting their local economies by amounts to £3.6 billion every year.
The findings from Aldermore show that the 2.5 million landlords in the UK have spent an average of £1,443 over the last 12 months on local tradesmen.
Of that figure, landlords have spent £879 million on letting agents, followed by £442 million on paying general handymen and plumbers were paid £396 million.
In addition, electricians accounted for £375 million, builders were paid £337 million and cleaners earned £243 million.
The group managing director at Aldermore, Damian Thompson, said: "Across the UK, landlords are an integral part of the local community and provide investment and fulfil the demand of the private rental sector.
"Around every landlord is an ecosystem in which they are paying local tradespeople like builders, plumbers and decorators for jobs and these companies will then train-up their employees and pay their own local suppliers for services."