Landlords and property companies have a bad reputation but the majority of them are just trying to maximise their income and aren’t out to give their tenants a hard time. With the global financial crisis of recent years, it is becoming harder than ever for first-time buyers to get a foot on the ladder, meaning that more and more young people are looking for good quality rental properties as an alternative. Investing in rental property can potentially be very lucrative for those willing to take the time to do it right.
But whilst there can be great financial rewards for renting out properties, it can also be a headache if you don’t understand the way the system works or aren’t properly prepared. Here are some tips on how to take the stress out of this business for both you and your tenants:
Get fully insured: Of course, you are required to get buildings insurance when you own a property, but not every landlord is aware that they should also get contents insurance. Perhaps it is because they assume it is the responsibility of the tenant to insure their own belongings – but this is to forget items such as carpets, kitchen or bathroom fixtures which will come as part of the property and can be damaged in the event of fire or flood. Cover yourself for every eventuality and you could save yourself a lot of time and expense further down the line.
Invest in property software: Many landlords are reluctant to put their faith in an agent to manage their property for them – and sadly, often rightly so. But if you have several properties to manage it can soon become too much of a strain to try and keep track of everything yourself. In this situation, property management software exists to do a lot of the work for you so you don’t even have to think about it. It can, for example, send automatic arrears letters to tenants, provide you with instant access to specific details about your portfolio, produce accounts and bank statements and even generate reports.
Get a tenancy agreement: This is an absolute essential as it means both you and your tenants are protected by law. I have heard so many cases of landlords letting to ‘friends’, only to lose out badly when they refuse to pay rent or damage the property and then leave without giving notice. You should also run a credit check and ask for references on potential tenants to give you further peace of mind.
Do it yourself: Once you have the above-mentioned property software, there is really no need for an agent. To further cut costs, use skilled friends and acquaintances to carry out maintenance or repairs, or do it yourself if you are able to. Do be aware of your tenants’ rights though: for example, once the tenancy agreement has been signed you can’t enter the property without giving proper notice.
Get certified: You will soon get into hot water if you don’t have all the necessary certifications in place before you let your property. Since 2008, all landlords are required to have Energy Performance Certificates for their houses, and the Landlord and Tenant Act of 1985 legally obliges all landlords to ensure that all electrical appliances and installations are safe before the tenant moves in, as well as carrying out checks every five years. Gas installations also have to be checked, so bring in a CORGI registered engineer to do this.
But whilst there can be great financial rewards for renting out properties, it can also be a headache if you don’t understand the way the system works or aren’t properly prepared. Here are some tips on how to take the stress out of this business for both you and your tenants:
Get fully insured: Of course, you are required to get buildings insurance when you own a property, but not every landlord is aware that they should also get contents insurance. Perhaps it is because they assume it is the responsibility of the tenant to insure their own belongings – but this is to forget items such as carpets, kitchen or bathroom fixtures which will come as part of the property and can be damaged in the event of fire or flood. Cover yourself for every eventuality and you could save yourself a lot of time and expense further down the line.
Invest in property software: Many landlords are reluctant to put their faith in an agent to manage their property for them – and sadly, often rightly so. But if you have several properties to manage it can soon become too much of a strain to try and keep track of everything yourself. In this situation, property management software exists to do a lot of the work for you so you don’t even have to think about it. It can, for example, send automatic arrears letters to tenants, provide you with instant access to specific details about your portfolio, produce accounts and bank statements and even generate reports.
Get a tenancy agreement: This is an absolute essential as it means both you and your tenants are protected by law. I have heard so many cases of landlords letting to ‘friends’, only to lose out badly when they refuse to pay rent or damage the property and then leave without giving notice. You should also run a credit check and ask for references on potential tenants to give you further peace of mind.
Do it yourself: Once you have the above-mentioned property software, there is really no need for an agent. To further cut costs, use skilled friends and acquaintances to carry out maintenance or repairs, or do it yourself if you are able to. Do be aware of your tenants’ rights though: for example, once the tenancy agreement has been signed you can’t enter the property without giving proper notice.
Get certified: You will soon get into hot water if you don’t have all the necessary certifications in place before you let your property. Since 2008, all landlords are required to have Energy Performance Certificates for their houses, and the Landlord and Tenant Act of 1985 legally obliges all landlords to ensure that all electrical appliances and installations are safe before the tenant moves in, as well as carrying out checks every five years. Gas installations also have to be checked, so bring in a CORGI registered engineer to do this.
