2015 is shaping up to be a great year for landlords. Last year, the UK witnessed a boom in buy-to-let properties, in particular with older generations investing their savings into buying a second home to rent out. This certainly seems a wise move given the continued rise in demand for property combined with buyers increasingly being priced out of the buying markets. Finding tenants has never been easier!
So, if you’re in a position to afford this, what better time than now for you to capitalise on this situation? You don’t need to have a long history in property management either, but there are procedures and protocols that you need to adhere to. If this sounds like the kind of venture you’d like to take on, read on to find out some useful tips to help you on your way to becoming a landlord.
Safe and Legal
You can’t just buy a home then lease it out, before it is deemed suitable for tenants there are a number of legal checks you need to meet. A few examples of this are:
- Annual and approved Gas Safety certificates
- Electrical safety standards
- Energy Rating Certificates
- Have comprehensive Landlord’s Insurance.
- Create an itinerary of what’s in your property
Along with this are a number of financial regulations to consider, especially if you are involved with buy-to-let. Naturally, if this rental income is paying the mortgage on your property you’ll want assurance that this is secure.
You can seek financial advice online, but an alternative and more independent way to deal with this is to take a course in real estate finance. Providers like Redcliffe Training have courses available where you can learn all you need to know to ensure you manage your monetary situation professionally and with clarity.
Be Selective with Tenants
Remember the ball is in your court as a landlord and you shouldn’t just choose anyone for the sake of leasing your property. You need to carry out full checks and references against anybody who applies to rent from you. Equally, you should receive a deposit first and be involved with the Tenancy Deposit Protection scheme. Also it’s worth ensuring your prospective tenants have a guarantor to pay their rent so you don’t end up out of pocket.
Be Clear from the Outset
After you’ve found an appropriate tenant, the contract you draw up should ensure they keep the property in a decent state. Protecting your property from any damage – accidental or not – that might happen during their stay. This avoids any complications should they challenge you on any charges you feel are appropriate following inspections, or after they have vacated.
So, before you take your first steps into the property world, be sure to take on board some of these tips to help make your first lease as simple as possible.