Renting a property may well be complicated. The question, therefore, becomes: why do people choose to become landlords? Although some people stumble into buy-to-let investing, many others actively seek out such opportunities in search of a second income or as a means of securing their financial future. According to 38% of landlords, renting out property is actually a long-term investment (UK Landlord Survey 2021).
A person may decide to rent out his property for a variety of other reasons. A few of them have been mentioned below, which may influence a person to become a landlord.
Renting an inherited property
Inheriting a rental property from a relative is a common reason for landlords to enter renting (5% in the UK Landlord Survey 2021). Royal London predicted in 2017 that the transfer of wealth between generations would total £400 billion. An ageing population might raise this number.
Property rental for extra income
31% of landlords in the UK who responded to our Landlord Survey 2021 claimed that they rent out their property as a secondary source of income. If you already have work that keeps you busy full-time, renting out a property can give you a reliable source of additional income in addition to the salary you receive each month.
Flexible Tax-Free Income
If you are a landlord who manages own property, you will also have direct input into the decision of who will occupy your property. When you live on the property, you can take advantage of Rent the room scheme can give you an extra income of £7,500, which is tax-free.