So, you’ve found a property and you’re thinking about renting it out. Or maybe you haven’t found one yet but you’re debating the idea. Here are some tips for first time landlords.
Tips for first time landlords
Familiarise yourself with regulations and landlord duties
There are many rules and legal requirements that UK landlords must follow. It’s important that you have a read up on these before you start the renting process. Regulations change often so you must remain up to date with these during your time as a landlord.
It’s important that you look into these for your new investment property before finding tenants.
Look into different locations and assess how popular renting is in the area. Some landlords choose to buy and rent properties that are located near their home, but with a good property manager, this is not essential.
Find a home and get the property ready
Once you’ve found a home to rent out, you’ll need to ensure that it can be made comfortable for tenants. In some cases, you may need to invest in new appliances or decorating for your new tenants. This can all help to increase the value of your property.
Insure the property
As the landlord, it is your job to ensure the property has appropriate insurance. Either you or the tenant can organise contents insurance.
You will need to decide whether you are going to offer the property on a furnished or unfurnished basis. Make sure that you have photos of the property and any furniture that you supply. This means you will be covered if any damage is found after letting the property out. Remember that you should expect some wear and tear as a landlord.
Find the right tenant
There are various ways that you can find a tenant for your property. You may choose to advertise the property online through a letting agent. There are many benefits to using a letting agent, such as them organising viewings without you needing to be present. Property managers can support you with screening tenants and collecting rent for your buy-to-let.
You’ll need to ensure that any potential tenants can afford to pay the rent for the property. Additionally, you should obtain references before agreeing to let the property to a tenant. This can help to ensure that you find reliable prospective tenants. Tenant screening is very important.
Finalise the tenancy agreement
The rental agreement is a written document that needs to be clear. It will outline what’s expected of your prospective tenant. You will outline how much rent needs to be paid, rent collection dates and other important information, such as tenancy length for the rental property. You will also need to decide on a suitable security deposit for the property.
You’ll also need to provide the tenant with an inventory of the property and let them know about any ongoing maintenance expectations. Recently, there has been updated guidance on damp and mould in rental properties, so you’ll need to let your tenant know how to deal with this if it could be a problem.
Is now a good time to be a first time landlord in the UK?
Over the last few years there have been many changes for landlords in the UK. However, these changes have been implemented to benefit all parties in the long run.
The rental market is thriving in the UK, which makes now a great time to become a first time landlord. We can support you with a range of landlord services. In time, you can reinvest your rental income into the home to raise the property value.
Property investors may also need to look into some landlord insurance. This is important when becoming a landlord. There are many experienced landlords who can offer advice to you as a first time investor.
We hope you’ve found these tips for new landlords helpful. Don’t hesitate to contact us if you need any support with your buy-to-let.