3 Tips For First-Time Landlords

 

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If you have a property that you are looking to rent out, this can be a great way to supplement your income. Becoming a landlord is a very popular way to make more money from your assets, building up your wealth and helping you achieve your goals. 

However, many people assume that this is an easy job that requires no effort. This couldn’t be further from the truth. Owning and letting out your property requires knowledge, money and time in sometimes great proportions. If you are considering pursuing this side-hustle, make sure to read these three key tips for first-time landlords. 

1. You’ve Got To Spend Money To Make Money

This is such a cliché phrase, but that’s simply because it is true. Sticking your existing property up for rent without making updates or improvements will bite you down the line. Instead, you should make sure the property is in great condition, making it attractive to potential tenants who might want to live there. 

Indeed, these improvements will also allow you to value your property more highly when it comes to figuring out a rental price. If you install quality furnishings, have well-maintained plumbing and electricals, and offer good amenities, your tenants will be more willing to pay a higher price. 

2. Tick Every Box

If you are thinking of renting out your property, there are many items of paperwork that should be acquired and correctly filled out. These include:

• Electrical Installation Condition Reports (EICRs). These are reports that are essential in case of any electrical issues that would require you to claim insurance.

• Landlord insurance. You will need to insure your property as a to-let property in order to be able to claim in the event of damage or theft. 

• Legally binding tenancy agreement. You will need to produce a legally binding tenancy agreement for your tenants to sign, in order to make them contractually obliged to fulfil their part in payments and behaviour. Similarly, these contracts hold you accountable for any repairs or services stated.

• A deposit scheme. You cannot accept a deposit as a landlord and keep it yourself; you must enter it into a safety deposit scheme, and provide proof of such to your tenants.

3. Prepare To Encounter Problems

As well as spending money, as a landlord you should be prepared to encounter issues that take up some of your time. If you let your property through a letting agent, these issues will be handled by them, but you will be charged a fee. If you choose to manage the property yourself, you will need to be available to your tenants if there are any issues that arise within the property. 

These include issues with plumbing or electricity, home improvements, disturbance from neighbours, subletting, pet ownership questions, tenant disagreements or furniture damage. If you consider being a landlord to be a hassle-free job, think again!

Final Thoughts

If you are considering renting out a property, make sure to follow this guide to learn how the process works!