Why Your Tenants are Older These DaysWritten By PropertyLoop February 19, 2021
Have you been fielding enquiries for your rental from a lot of middle-aged potential tenants these days? Certainly, the difficulty with affording property means many older people are switching to the private rental sector instead.
It’s not uncommon to find people in their 30s, 40s and 50s who have always rented. And the reason they have never bought a property may not always be down to a financial one either. Some people just prefer not to be tied down to a mortgage for a property. They like the idea of being able to up sticks whenever they like. This is especially the case for more freelance workers based at home these days. After all, they could work from anywhere, so why choose to stay around in cold Britain during the winter months?
Number of Older Private Renters Is Increasing
Government research a few years ago showed that 9.3% of private sector renters were aged 65-74, while one third of all renters are aged 35 to 45. A decade earlier only one tenth of people that age rented. That’s quite a jump within the space of 10 years!
Many older renters said they have chosen to live that way because it allows them to improve their standard of living. These are often people who have bought a property at one time and are now using the equity they have built up in to pay for an upmarket rental. When the equity runs out they can switch to funding the rent with their retirement pot.
Landlords Using a Retirement Rental Strategy
As a result, some landlords are buying rooms in upmarket private retirement homes or complexes and renting them to older tenants (or at least those in the 55 and over age-bracket).
Retirement Villages on the Increase
Downsizing and moving to a holiday village is the type of US-style senior provision which is complex that is becoming increasingly common here in the UK is similar to the US-style retirement villages. There will often be a pool, spa provision, games room, restaurant, bar and other forms of entertainment. Often breakfast and even dinner or lunch is provided. Residents choose to come and go as they like and socialise with other guests at their leisure. It’s often likened to an ongoing holiday camp, thanks to all that on-site entertainment.
Better still, for many older residents they are able to purchase care packages where they can be attended to at certain times of the day for help with dressing etc. Other services for residents often include laundry provision, cleaning, hairdressing and a regular beautician visit etc
Of course, the cost of such a facility is much more expensive than a standard rental apartment – and which is where the landlord makes his or her profit. Couples can often be charged as much as £1000 per week for such luxury. But then, considering entertainment and meals are provided onsite, there is very little else to regularly spend money on.
Luxury Senior Accommodation
A large stately home is often renovated to form individual retirement apartments which have been decorated to an extremely high standard. This is your upmarket private rental and will involve a concierge service from which you can order laundry provision, meals, etc. There will be a gym, pool and probably a theatre room and restaurant too.
Such is the popularity of upmarket fashionable private retirement complexes that the British Property Federation revealed several years ago there were already around 35,000 developments either completed or under construction. Another 110,000 were in the pipeline and expected to be sold within months of being advertised on the seniors’ market. .
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