If a person approaches the action properly, becoming a landlord can provide anyone with financial security. It seems like a perfectly accessible opportunity with increasing benefits, but there are some things you must consider first…
The money that comes from tenants paying rent will not go into your savings to begin with; there will be other costing considerations first. If you have purchased a property through a buy to let mortgage it will partly go on repayment, as well as taxation costs. These are in addition to other costs, like maintenance and landlord obligations. Plan in advance that these payments will be an ever-present cost and you won’t fall under with your purchase.
Landlords have legal obligations as do all other individuals owning private property. As such, you will need to monitor tenants through bi-annual visits and check legal details on regular occasions. Otherwise, you can end up paying fines or doing time. Adhere to regulations and ensure, even before you bring someone into your property, that the person you rent out to can legally do so. Neglect significant details such as these and they will surely come back to haunt you so if you’re struggling, letting agencies can help handle them.
Whilst these cover your own back legally relating to the tenants themselves, there are also regular checks on properties to ensure tenant safety. There are existing regulations on what should be covered here too such as fire hazards and procedures. Gas and electrics should be checked to be working correctly as well as other features depending on the specifics of the property. We suggest you research into what will need certificating before purchasing an apartment or house site.
As mentioned, before it’s all about location. Location, location, location! You never invest without the aim of making money so you want your property to be as marketable as it can be. You therefore look for a location with certain desirable destinations nearby, preferably in walking distance. You’ll be able to guess at most:
- Public transport
- Leisure facilities
- Highstreet shops
Priming your location can vastly improve the chances of a rental buyer approaching you and not your competition. If you aim to hit as many pain points as possible and offer tenants a destination they desire, you have it in the bag!
We know that having no tenants is a big issue for many individuals in the market. It can stunt income and prevent people from making necessary mortgage payments. Imagine trying to run a house with no money and this means maintenance too. We don’t want that for you.
A way to reduce this risk would be, we suggest, to work on building up a positive landlord/tenant rapport. People who like their property managers are more likely to remain tenants for longer and often offer longer notice periods when it does come time for them to leave. Sometimes tenants may even offer recommendations to new house seekers, so it’s certainly worth working on your relationships.
If you have all these points covered, your property letting dreams should be good to go.
Nick Fox started his property investment career 10 years ago and his portfolio has grown to one of the largest in the UK. Nick now mainly focusses on HMOs (houses in multiple occupation) and works to help others achieve property success too. Visit here to find out how he can help you.
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