Are you thinking about becoming a landlord in the near future? Then it’s a good idea to complete thorough research before you begin the process. In this blog, we’re letting you know the biggest mistakes new landlords make and how to avoid them.
Why is it important to complete landlord research
Landlords who are well researched in the processes often find the experience much less stressful and can often save money. If you find yourself dealing with an issue, it can be challenging and may leave you facing legal battles.
Many landlords choose to seek support from a trusted property management company. Property managers often have different levels of service they can provide, such as let only or fully managed. A fully managed service means they will take care of everything, from rent income collection to inspections and market research.
Having a dedicated property management company on hand can also help you reduce void periods in the home, as they are knowledgeable on marketing and advertising properties for landlords. Having a property manager on hand can save you a lot of time and effort in the long run.
Common mistakes landlords make
Not screening tenants thoroughly
Tenant selection can truly make or break your landlord experience. If you are searching for your own tenants, you need to complete a thorough vetting process before offering a tenancy agreement. This can include credit checks, verifying employment, seeking previous landlord references and other screening checks. Failing to complete these tests can lead to difficult tenants who may end up in rent arrears or may cause significant damage to the property.
Selecting high-quality tenants means that they may be more respectful of your space and should report any issues promptly. This highlights the importance of completing inspections regularly.
New rules under the Renters’ Rights Act mean that section 21 evictions can no longer be used, so landlords must have an evidence backed reason to evict tenants.
Underestimating maintenance
Every landlord should have a pot of money aside to cover unexpected maintenance in the rental home. This could include replacing appliances, redecorating the home or completing other maintenance tasks. Read our blog on seasonal maintenance for landlords. Neglecting property maintenance issues can damage satisfaction and lead to costly mistakes.
By having this money set aside, you can promptly deal with any issues in the rental property, helping to keep tenant satisfaction high.
Not pricing the rental property accurately
Landlords are now required to state the exact fee they wish to obtain from tenants as monthly rent. This number cannot be inflated and force tenants into a bidding war. The rent you charge should be in line with market rates, not based on personal preference.
You should also be cautious as landlords can only increase rent once in a 12 month period, and it must be a reasonable adjustment.
Ignoring compliance requirements
Landlords must ensure they act in line with their legal obligations. This means testing appliances when required, renewing electrical safety certificates, ensuring deposit protection, completing the correct paperwork and more. Failing to adhere to obligations can lead to poor tenant satisfaction and could land you in a legal battle if the home is not safe.
Landlords who breach the mandatory repair deadlines of Awaab’s Law risk a civil financial penalty of up to £7,000 for leaving serious safety hazards unaddressed.
Other mistakes landlords can make include the following:
- Unreasonably denying pets in your investment property
- Using standard home insurance rather than specialist letting policies
- Not inspecting the property regularly
- Asking for too much rent up front – this is now capped at one month
- Not adhering to all legal responsibilities
Landlords need to be aware of the many changes brought in by the Renters’ Rights Act. We hope this blog has been helpful on common landlord mistakes and managing tenants effectively.
At Intus Lettings, our fully managed service takes care of everything for you, so you can get back to doing the things you love. We aim to put the enjoyment back into the lettings service.
Are you thinking about becoming a landlord and need support? We are a nationwide letting agency with years of experience and we’d love to help. Contact us today.
