Is Being A Landlord Ethical?: In a recent video, I sit down with Melvin to tackle one of the most controversial topics in the UK property market: Is it ethical to own multiple properties as a landlord? We discuss the housing crisis, rent prices, landlord responsibilities, and whether property investment is fair or exploitative.
If you want to see exactly what we both said, please watch the full video until the end. You can find the video at the top of this page or on my YouTube channel. If you enjoy debates, you are going to love this one!
With many people struggling right now, there has been a rise of socialist ideas. Some people are questioning capitalism and the ethics of the free market. When people don’t have much money, it is easy to look at landlords as someone to blame. But is being a landlord ethical? In this article, I will give you 3 reasons why being a landlord is ethical.
If you are a property investor, it is important that the public understand why your work is needed and moral. If they don’t, they will vote for candidates who want to kill the industry! Please share this article on social media to help get these arguments into the hands of more people. Together, we can protect the property industry for landlords and tenants alike!
1. Is Being A Landlord Ethical?: Competition Helps Consumers!
If you didn’t have landlords, someone would need to own the properties. Many people cannot afford to buy a home, so it would most likely be government that took on this role. The problem with this is a lack of competition! Because tenants would have no option but to accept whatever they were offered, this would drive standards down. This has happened whenever a country has become socialist!
When there is competition in a free market, consumers benefit. If someone is a bad landlord, overtime they will lose their tenants. The better service a landlord offers their customers, the longer tenants will stay and the more money the landlord will make. Good landlords grow and buy more properties, bad landlords fail!
2. Is Being A Landlord Ethical?: Prices Are Dictated By Demand!
But what about prices? Is being a landlord ethical if you charge a high rent? Rents are a function of supply and demand! When a lot of people want to live in an area, but there aren’t many houses, prices go up.
If you artificially control rents, this means that the same amount of people are housed. However, as prices remain low, there is no incentive to build new homes. On the other hand, if you allow the free market to work, more people will be housed. This is because higher rents attract investment in building new houses. This new supply, overtime, also drives down rents!
3. Is Being A Landlord Ethical?: Building More Is The Solution To The Housing Crisis!
Now you may be saying to yourself, ‘this is all good in theory, but right now there are landlords offering a terrible service and rents in my area are too high’. Businesses, including landlords, can only get away with offering a bad service if there isn’t enough competition! Similarly, prices only remain high if there are no alternatives to choose from.
This is why building more homes is the answer! This creates more competition and drives out bad business practices. Become part of the solution: start building homes; refurbishing old ones; or converting disused commercial units into residential. That’s what I do, and that’s what my students do too!
Is Being A Landlord Ethical? Yes, And It’s Profitable Too!
Is being a landlord ethical? Yes, and being a good landlord, that does right by their tenants, is profitable too! Come to one of my training days and learn how to be a good landlord. Become part of the solution! Join me at my next £1 training event!
We have different courses throughout the year, each teaching different things. Here is a sample of what you could learn on one of our popular £1 courses:
-
Become a property investor using other people’s money so that you can get started straight away
-
Utilise the 5 different types of raised finance so that you know exactly what to offer and when
-
Find the perfect properties for the BRRR strategy
-
Recycle your money so that you can ‘rinse and repeat’
-
Build a power team you can trust, so that you can save time and money
-
And much more!
Tickets are only £1, and you can get yours here. If you are ready to take action, I hope to see you very soon!
