New research has revealed that the typical British landlord still believes their role to be part-time, with the majority owning just one rental property.
In addition, a higher number of landlords manage their portfolio as a private individual.
The investigation from the Council of Mortgage Lenders also suggests that there is a growing trend towards larger portfolios. This is despite rents making up less than half of a landlords’ overall income.
Rental income however is becoming a very significant form of cashflow for many part-time buy-to-let landlords.
This year, 87% of landlords questioned in the survey said they managed their portfolio as an individual or a couple. This is fairly unchanged from the 89% recorded in 2010.
For those reporting operations as a group or company, the figure stood at 14%, from 11% 6 years ago.
A huge 95% said they do not consider buy-to-let investment to be their main occupation, up from 92% in 2010.
While most landlords surveyed own just one rental property, a trend towards investing in larger portfolios is growing. Between 2010 and 2016, the proportion of people managing one property slipped from 78% to 63%.
During the same period, buy-to-let investors managing between two and four properties increased from 17% to 30%.
Further data from the report shows that rental income makes up less than half of a landlord’s total income. 90% of investors questioned said that this was the case, almost unchanged from 2010’s results.
The total of landlords receiving no rent, mostly due to a property being unoccupied, has fallen sharply from 21% to 5% during the last six years. In the same timeframe, the number of landlords receiving around a quarter of their overall income through rents rose by 7%.
The report certainly seems to reveal to that typical landlord is an individual running their business on the side. Given the ever-growing demand for rental accommodation, the gradual expansion of these businesses highlighted should come as little surprise.