The research of 10,141 over 50s revealed that roughly 10% are now taking advantage of the opportunities property rental offers and those considering becoming landlords have reason to feel optimistic.
On average, those surveyed estimated that they make almost £700 profit a month from letting a property. However, success is not guaranteed as one in ten said they were just breaking even or making a loss.
A third of respondents have entered the buy-to-let market in the last five years and while 24% think being a landlord is tougher than they had expected, around 10% said they found it easier than they thought they would. This may be because only 45% actually bought the property with the specific purpose of renting it out, 14% inheriting the property and 7% purchasing it for a child or grandchild to live in.
Being a landlord does cause some day-to-day worries. The top concerns are renting the property out to bad tenants (36%) and managing the property as you get older (19%). And perhaps people are right to have some worries as a previous Saga survey showed that 32% had experienced problems with tenants paying rent, 27% had experienced damage to the property and 11% had needed to take legal action against tenants.
Sue Green, Head of Landlord and Home Insurance, Saga says: "Buy-to-let is an increasingly popular investment for the over 50s, particularly in the current financial climate but clearly it is not without challenges. The recently announced cuts to tax relief for buy-to-let landlords, for example, are a new factor that people will have to take into account when deciding whether to start letting a property.
Our research shows that, while landlords are largely positive about their decision, they are also likely to face practical and financial hurdles. This is why we have developed a guide that provides practical advice to landlords, helping to address the most commonly raised concerns and giving them peace of mind so they can focus on enjoying their retirement.”
