Landlords are being urged to forget the old adage of ‘Location, location, location’ and instead focus on rent costs.
According to Dlighted, the most important factor for tenants who are choosing a rental property is not where it is located but the cost of rent for 77% of people questioned.
That's 9% more than for those who opted for the rental property’s location.
Tenants also rated having access to a garden as being important, for 48% of respondents, while 32% wanted a home where they could keep pets. Also, 23% of tenants said they wanted parking with their rental home.
‘The key for buy to let success’
A spokesman said: “It's always been claimed that the key for buy to let success is location, location, location but today it would be more accurate to say cost, cost, cost.”
He added that the best way to keep the costs of having an empty property down is to quickly find tenants and the best way of attracting tenants is to keep rental costs low.
He added that a landlord’s insurance product which enables a tenant to move in without paying a deposit doesn't just protect a landlord against having an empty property and a void period but the insurance will also help to protect against having an empty property with no rent being paid.
The spokesman said that covering a landlord against unpaid rent and also property damage gives them more protection that a traditional deposit would do.
Dlioghted says that landlord insurance would enable tenants to move in without a deposit and keep their removal costs to a minimum and landlords would see their property being let more quickly.
Five year fixed BTL mortage rates continue fall
Meanwhile, the costs for a five year fixed buy to let mortgage have continued to fall with lenders reducing margins to attract business.
Research from Mortgages for Business reveals that lenders are absorbing more costs on all LTV products and making a five year fixed deal more attractive in the process.
The research also highlights that landlords who are using a limited company to borrow funds are also enjoying falling BTL mortgage rates.
The chief executive of Mortgages for Business, David Whittaker, said: “The only constant in the BTL market over recent years has been change.
“Our data shows that landlords and lenders are moving towards solutions that will keep buy to let as a popular investment for years to come.”