The buy to let industry is booming and it isn’t hard to see why. The internet has made it easy and more affordable to sell and let out a property quickly. More people than ever before are choosing to rent, rather than buy, due to current economic challenges making it difficult for many to get on the property ladder.
However, before you jump into being a landlord, there are many things to consider. Here we’ll look at some of the most important guidelines you need to follow when becoming a landlord.
Understanding your responsibilities
As a landlord, you’re going to have many responsibilities. These are clearly laid out, along with other important guidelines, on the Gov.uk website. First and foremost, you need to ensure the property meets all health and safety guidelines and is fit for occupation.
If you’re asking for a deposit, you’ll also need to take part in a government approved deposit scheme to ensure the money is safely stored until the end of the tenancy. Tenants have a lot more protection these days and if the deposit isn’t secured and given back at the end of the agreement (provided the property is still in the same condition as when they moved in), you could end up in significant trouble.
Invest in landlord’s insurance
Owning a property means you’re responsible whenever something goes wrong. That includes potentially costly repairs. There are a lot of problems you can run into when you’re letting a property out to different tenants. As you’ve more than likely spent a lot of money on the property, it makes sense to protect your investment. To do that, you’re going to need landlord’s insurance.
You can take out insurance on both the building and any contents you have such as the fixtures and flooring. Perhaps more importantly, some landlord insurance policies protect you if a tenant doesn’t pay their rent.
Rent via a reliable agency
Look online and you’ll find a lot of horror stories about landlord’s who have encountered tenants from hell. The majority of these tend to be told by landlords who rent their properties out privately. Therefore, if you want the best experience it’s a good idea to consider renting the property out via an online estate agent.
Online agencies such as Hatched, have become extremely popular for landlords, offering a low cost, reliable rental service. They’ll help you market the property and find the best possible tenants at an affordable cost.
Overall, becoming a landlord isn’t as straightforward as you might think. It’s a huge decision which needs to be given a lot of thought. Once you’ve researched the legal guidelines, be sure to choose a well-known, reliable estate agency to rent the property out for you.