According to a report by the Centre for Ageing Better (CfAB), the number of over-60s renting privately has increased by 200,000 in the last four years.
And the CfAB predicts that about a third of people over 60 could enter the private rental sector by 2040 as a growing number of older homeowners choose to sell up and rent in retirement.
This trend could have a significant impact on the target tenants for your landlord clients and it could present an opportunity for you.
The primary factor impacting the success of a buy-to-let investment is the right property pitched to the right tenants in the right area.
A shift in the demographic make-up of the tenant population could drive growth in new areas and on new types of property that have previously proven unpopular among buy-to-let investors.
Choosing the right property
A landlord targeting older tenants may, for example, consider purchasing a bungalow in a rural location, which would otherwise prove an unlikely choice of investment if they were targeting young professionals.
Another element to consider is the styling and finish of the property.
Older tenants may choose to sell their home to downsize but having established a level of wealth and comfort throughout their working life, they won’t want to sacrifice the quality of their accommodation.
Renovating run-down properties could provide landlords with an opportunity to deliver the high standards their potential tenants are expecting and could provide you with an opportunity to finance those renovations.
Benefits of refurbishment
The most straight-forward approach to property refurbishment is light refurbishment, which doesn’t require planning permission or building regulations and so avoids some of the risks of more speculative property development.
Light refurbishment renovations commonly include new bathroom, new kitchen, redecoration, rewiring, or new windows and a newly renovated property can increase the capital and rental value.
A refurbished property could help landlords to attract this new generation of tenants, and a fresh look at the idea of Generation Rent could help you to boost your buy-to-let business.