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Landlords place tenant needs over profits – Paragon

  • 23/05/2022
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Landlords place tenant needs over profits – Paragon
Landlords' top priority when expanding portfolios is to find a property that is suitable for their preferred tenant type.


The second most important aspect is familiarity with the local area and proximity to investors’ own homes, according to research by Paragon Bank.

The financial features of a property were less important to the 621 landlords surveyed. Only a third said that purchasing for high yields was a primary strategy, and 37 per cent of those surveyed said the potential for capital gains was a priority.

Richard Rowntree, Paragon managing director for mortgages (pictured), said: “It’s interesting to see that considering how properties meet the needs of tenants is central to landlords’ investment strategy and more important than generating high yields or capital appreciation. This is perhaps at odds with the negative perception of landlords who are sometimes viewed as placing profits above people.

“Highlighting such misconceptions and helping people to better understand buy-to-let investors is what we’ve set out to do with our Landlord Report, something we hope will be valuable for brokers and others within the mortgage industry.”

David, a landlord from County Durham, manages a 20-property portfolio with his wife Joanne. He said: “Living close to my portfolio means I can respond quickly to tenant requests for assistance. Buying in a town where I grew up also means that I know street by street where the good properties are, and which areas to avoid.

I attend every letting viewing with the agent in order to meet all prospective tenants to discuss their needs, wants and background on the day.”

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