A growing trend is emerging amongst the increasing number of people renting their homes… the TIARA tenants.
This festive time of year is full of sparkle and promise… just like the properties that tenants often long to buy. Whilst we are fast becoming a rental nation, many people aspire to own their homes. There is, however, disparity between the style of properties that people aspire to purchase – and the reality of what they can afford to buy. Enter the TIARA tenants.
Jessica Simpson from Strutt & Parkers explains: “We are seeing a new buyer type emerge in the flat market which we call TIARA’s: ‘too into appropriate rented accommodation’. These are current tenants who contact us looking to buy, but have a slight “princess” mentality where everything they like is too dear and they are unwilling to compromise, having made themselves too comfortable in their rented property. Many of these rental properties are charming, older Estate houses which could never be bought…. But beware when the market turns, the princess may become the pauper as their equity remains static and they are potentially very quickly priced out of their preferred market.”
The HMO Investment Perspective
The emergence of TIARAs is an interesting opportunity for HMO investors – especially those offering high quality accommodation. Martin Roche of HMO Property Sourcing explains: “Tenants who want to buy a certain level of property need to raise the necessary level of money. HMOs offer an affordable, pleasant lifestyle whilst providing to chance to move towards their goal of their dream property without unnecessary compromise.”
He adds: “It’s important that the standard of the bedrooms and the living space provided appeal to the ‘high end’ tenants who aspire to buy their next home. If investors get this right, TIARAs will offer long term, reliable tenants as their unrealistic expectations of property purchasing will mean that choosing – and securing – a home to buy will take a long time.”
With further property price increases predicted for 2016, now is the perfect time to consider HMOs and capture the TIARA tenants.
To find out more, talk to the team at HMO Property Sourcing.