The Beginner's Guide To Being A Landlord
Over the last 10 years more than a million British people have become landlords
. Apart from choosing the best investment property as a landlord there are many steps after this which are crucial to making a full success from your investment. Some of these are how you attract tenants, fulfilling your legal obligations, choosing the best landlord insurance and understanding how to deal with tenants over time.
When it comes to attracting tenants do not become over-relaxed because you know that rental demand is increasing. Ensure that the property is spotlessly clean and in the best condition. It is worthwhile giving it a facelift with a neutral colour of paint; not only does this make it more attractive to potential tenants but also gives them the feeling that you will be a good landlord.
Go a step further as some professionals would by adding in touches such as fresh flowers and candles, and even the smell of fresh coffee or freshly baked bread which will make the property homely. If you currently have tenants in the property then ask them to do you the favour of ensuring it is clean and arrive in plenty of time to check the property yourself and make any necessary adjustments.
Be realistic about the marketplace. Do plenty of research on the internet, speaking to agents and looking at local newspapers in order to define your asking price for the rent. This way when you have suitable tenants who express interest you can be confident that you are getting a fair price. If your prospective tenants have done their research they will know it is a good price.
Regarding the legal obligations which you need to fulfil the first step is to inform the mortgage lender of your intention and if the property is leasehold you must also get permission from the freeholder.
You must hold an energy performance certificate if you are renting your property to new tenants. This certificate shows the energy efficiency of the property, it costs 70 approximately and will last for two years. Also bear in mind that if the property is to be let furnished then the furnishings have to comply with fire and safety regulations. Any electrical appliances have to be checked regularly by a qualified electrical engineer and the same applies to gas appliances which must be checked by a Gas Safe registered professional.
When you find tenants you then have to have an assured short-hold tenancy agreement prepared as well as finding a tenancy deposit protection scheme as landlords are no longer allowed to hold onto deposits. Legally you have to inform the tenants within 14 days after taking the deposit with the details of the scheme. Apart from honouring your legal obligations it is also advantageous if you were to have a dispute with tenants in the future, as landlords who do not sign up for the scheme find it harder to evict tenants if necessary.
In order to be fully up to date it is best to join the National Landlords Association or a local authority landlord accreditation scheme.
When choosing landlord insurance do not be tempted to opt for a cheap landlord insurance which may not contain all aspects of cover you could need. Although you want to get a good deal you also need your investment to be sufficiently protected. The best landlord insurance policy to opt for is a comprehensive landlord insurance which should include that all types of tenants can be accepted, loss of rent cover, property owners' liability up to about 5 million, full accidental damage and terrorism cover.
When dealing with tenants the very first thing to do before signing an agreement is to do a security check on potential tenants which will verify that they are who they say they are and that they will be able to pay the rent.
As early as the viewing stage it is important to make personal contact with prospective tenants. You will feel more comfortable yourself by doing this and even if you have chosen to use a letting agent you should still do this. When you have tenants in your property build a positive relationship by supplying them with relevant guides to the property and its' appliances as well as any local information if applicable. Make sure they have any emergency numbers as well as your own contact details.
Treat your tenants with respect and they are more likely to respect you and your property. Respond to any needs quickly and sort out problems which may arise immediately.
What about using a letting agent? This depends upon your own circumstances as to whether you feel it could be worthwhile. Letting agents can find and vet possible tenants, prepare agreements, do inventory and condition reports, organise the changes to council tax and utility bills and collect rent to pay into your account. On average they will take 11 per cent of the total rent as a fee. They can offer additional management services such as maintenance, redecoration, paying of bills on behalf of the landlord for an extra 6 per cent.
This choice will depend to a great degree on how much time you have as well as the financial implications. However if you follow these guidelines on preparing the property for viewing to attract tenants, how to treat tenants, the legal obligations and sourcing the best landlord insurance you will make a success of being a landlord.
by: Jackie De Burca
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