In this three-minute read, we look at the ten most important things a landlord needs to succeed.
If you’re contemplating becoming a landlord, here’s a helpful checklist explaining what it takes to let a property.
You may wonder why a checklist is necessary. After all, how hard can it be? You buy a property, find a tenant, and boom, you’ve got the whole landlord game figured out. Wrong!
The private rental sector is subject to so many rules and regulations that even experienced landlords get caught out and make costly mistakes.
Here’s what you need to know.
1 Legal matters – There are at least 175 laws that apply to landlords in the UK, covering everything from evictions to electrical checks. You need to be on top of all of them. Claiming ignorance (or that the dog ate your tenancy agreement) won’t get you off the hook if you get caught out.
2 Record keeping – It’s vital to maintain a clear paper trail so that if you get into a dispute, you have evidence to support your case. If you’re the kind of person who files important paperwork down the back of the sofa, consider getting someone to do it for you.
3 Vigilance – No matter how nice your tenant seems to be, regular inspections are a must as they allow you to nip problems in the bud. Lax landlords run the risk of discovering that their property has been sub-let, trashed in a series of all-night parties or, holy smoke, turned into a cannabis farm.
4 Take out insurance – We’re not talking about standard home and contents insurance, but specific landlord insurance. (It’s usually a condition of buy-to-let mortgages.) Various policies are available, ranging from top-tier versions that cover almost every eventuality, to no-frills options.
5 People management – Dealing with people is a major part of being a landlord. Most tenants are reliable and honest, but some, unfortunately, can be infuriating. If a tenant falls into the latter category, you need to remain cool-headed when dealing with them. Good landlords make business decisions, not emotional ones.
6 Maintenance – Routine maintenance stops minor issues becoming major structural problems. It helps to have a network of reliable tradespeople who you can call on when you need work done.
7 Tenant selection – Invest time at the beginning of a tenancy to find the right tenant. Never rush the process when it comes to reference and credit checks.
8 Tax implications – The tax rules covering rental properties have been significantly reformed in recent years. It’s worth getting advice from an expert to ensure you understand what you need to pay and what you can claim back.
9 Understand the market – Successful landlords in Oxfordshire understand the lie of the land, so that when it comes to setting the rent, they are bang on the money. Getting the price right means your property won’t be sitting empty for long periods.
10 Back-up – Good landlords don’t blunder their way through – they have back-up in the form of a reputable letting agent. If you want support dealing with complicated legislation, handling problematic tenants and managing day-to-day admin and maintenance, get yourself a good letting agent. Remember, mistakes can be costly.
Here at IMS Property Solutions Limited, we can help you to become a successful landlord and to see healthy returns on your property investment.