Over the last few years there has been a significant increase in the number of women buying property as part of a longer-term investment. Whether it is to develop houses in order to sell on for profit and move to the next property, or purchasing buy-to-let properties and becoming landlords, the rise of female property investors is going to continue. With celebrity inspiration in the form of a number of high profile female businesswomen and property developers, as well as the positive perceptions from tenants with regards female landlords, the figures will only rise further in future.
Data released last year as part of a report into female property landlords revealed that around 40% of all landlords are now women. This is a huge increase in numbers considering that even as recent as 1970, women were being refused mortgages unless they had a male guarantor as part of the application. When you compare this with the number of small and medium business owners (just 17% of owners are women), you can see that property investment is an industry where equality is approaching at a fast pace, but why is this?
There are a few reasons why women are looking towards property investment as a way of making money. One reason is that over the course of the last decade there have been a number of positive examples and role models in the public eye. Sarah Beeney for example is one woman who has been a success story and inspiration for women all over the country. As well as being a property expert on TV, she is also the founder of a DIY estate agent service, Tepilo. Having positive role models is important in any industry, and the numbers of female property investors could be linked to the increase in female visibility within this field.
Flexible Hours for Accidental Landlords
Figures show that more women than men have found themselves to be accidental landlords. Only 48% of women have deliberately purchased property with a view to renting it out to tenants. The figure for men is 61% in comparison. Many more women than men have rented out property that they own after purchasing a property for a family member (either a child at University who later departs, or for a parent who has then passed on). Once the profit potential is seen by the landlord, a more strategic approach can turn accidental landlords into fully fledged property investors.
Even for accidental landlords, owning a property and renting it out to tenants can be very rewarding. The flexibility of running your own property business is one where you are the boss of your time, the costs, terms of contract and everything else relating to its success. It is also something that doesn’t have to be a full time job, allowing time for other commitments such as family, work, and leisure time. These are all reasons why female investors are becoming particularly attracted by property investment as they juggle their work and family commitments.
Independence and Cash Flow
Data collected from landlords across the country seem to indicate that women think differently about property investment and how it can help them with long-term goals and financial independence. Whereas 53% of men rent property for monthly income, a higher percentage of 63% of women think in that way, rather than long-term capital growth. This steady cash flow approach provides many landlords with the chance to become self-sufficient and in control of their debts over a longer period of time.
Perceived Benefits of a Female Landlord
As part of the research, it became evident why tenants are usually happier if their landlord is a woman. There were a number of reasons why tenants indicated that they prefer a female landlord to a male:
- There is a feeling that female landlords are more sensitive to personal circumstances that can come up for anyone
- Female landlords are perceived to be much easier to talk to than male counterparts
- As far as organisation goes, women are believed to be better prepared for all eventualities
- If there is a problem with a tenant, women are believed to be much more reasonable with their approach
- As part of the search for a buy-to-let property, women take more time in choosing the right property
- Over time, and on the whole, the maintenance and appearance of a property is looked after in more detail and depth by a woman than a man
Although these might seem like broad generalisations, the perception of female landlords is positive and one that should help to push the charge of female property investors as they are more likely to receive a warmer welcome from tenants and prospective tenants.
Greater Acceptance and Inclusivity of Approach
One of the approaches of female landlords generally, when compared with male landlords, is that they are more likely to offer accommodation for rental purposes to a diverse range of tenants. 35% compared
to 25% of men would rent property to recipients of housing benefit for example. You are also more likely to find tenants of women to be students, pensioners or single tenants. This acceptance of a wider and more diverse set of tenants does bring with it extra caution in case of potential damage by tenants, but overall should be deemed a positive contribution to the industry.
Residential Estates has built a team of experts on a wide range of topics relating to property investment, regardless of our clients gender. We are able to offer you extensive guidance and advice on your personal
situation, ensuring that you have all of the relevant economic, location and industry information that helps you make the right decision for you.
To find out more about our service and for information from our property investment experts, you can speak to us through a number of simple means. You can either call us on 01244 343 355 or email firstname.lastname@example.org and a member of our team will be happy to consult with you and arrange a meeting at your convenience.