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 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 North Nottinghamshire 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.
I help sellers, buyers, landlords and
tenants. Please contact me if you need any help or advice.
Call me or message me or drop me a note:
Tel: 01777 237310 or 07981 744003
Follow me on Facebook:
https://www.facebook.com/thegoodestateagentnorthnottinghamshire
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