I have said for the last few years now that the biggest threat to UK landlords is the rise of Corporate Landlords. These are effectively large institutional investors building 1000’s of rental units in key areas – all controlled by one company and actually providing a much better level of service than normal landlords.
In this recent article, once foreign investors pumped £670m into UK student accommodation in one single day! This is part of a 5,507 bed portfolio over 12 university cities!
Tell me you don’t think this is a threat to traditional landlords!
And it’s not just this, there are many more threats to the single landlords. Namely the fact that both the Scottish And UK governments are activity planning to drive single landlords out of the market?
Don’t think this is true? Then simply take a few minutes to think about some of the legislation that has been implemented recently. There are far too many to list here, but it is clear to see they make if very prohibitive for amateur landlords to continue to be profitable. And this will continue as the years go on, you would need to be pretty naive to believe detrimental legislation won’t continue to be forced upon you.
So what can landlords do about this?
Firstly, just knowing the threats will give you the ability to plan ahead. Secondly, understand that being an average, mediocre landlord is no longer going to cut it. You need to invest smart and ensure your strategy is one that is sustainable. Lastly, you need to build a strong power team. This means getting group of trusted peers, mentors, industry professionals and experts who can give you the help and advice to stay ahead of the game.