Top 4 Tips To Equip New LandLords
All sorts of people rent these days – some as a lifestyle choice, others because they can’t afford to buy, and many will be renting long-term. They want a property that feels like a home, not a stopgap, so if the property does not meet today’s expected standards, the tenant will either treat it badly or find a better one and most of the time leaving landlords with a possible costly headache or even threatened legal action against them.
Are you equipped to deal with being a landlord whether you are buying a property or opting to become a landlord due to circumstances in your life?
1. Passionate About Your Property
Disengage your emotions and buy a property that will generate a good return. Don’t fall into the common trap of buying a place you like but that is entirely unsuitable for the tenants you have in mind. Be careful to approach the decoration and fittings in the same way. Go for generic colours and furnishings.
2. Do You Have The Funds Available? Calculating Your Time And Costs
Landlords must also be realistic about continuing costs along with the time it takes to supervise and manage your tenant. The boiler can break down at great expense or you could have a leak that needs urgent attention. “Calculate what you can afford and all the expenses that you may face as a landlord. It’s also vital to take professional advice on finding an appropriate mortgage and to factor in the likelihood of an interest-rate rise in the future.
3. Not Having Enough Insurance
I know letting and estate agents are perceived to be all a bunch of money grabbing rogues. This is what the press, government and storytellers who do not do their research and hire the bad agent want you to believe. One of the biggest insurances for landlords is hiring a professionally qualified agent. Landlords should also ensure their letting agent is registered with the Association of Residential Letting Agents (ARLA) so that both the landlord and tenant’s money are protected. The agent should be established in their area and by establishing a good trustworthy relationship with the agent, this will enable landlords access to a valuable professional tool with future tenants and further investments. As the agent has a wealth of expertise and professional knowledge of the Industry. This will enable many landlords to comply to all current and incoming legislation obligations, tenancy supervision.
Your property investment requires time to be looked after and problems sorted out quickly. Many landlords make the mistake of not treating it as a professional business or try to manage themselves to save expense. Don’t fall into a common trap where it appears easy until you make a costly mistake. It is harder to put right.
4. Other Insurances That Can Help
Standard home insurance is not designed for rental properties. Landlords will need to take out a specialist buy-to-let buildings and contents policy that includes public liability cover in case a tenant makes a claim against them for an accident they have in the property and landlords need to insure you are covered by accidents where the tenant is the cause. i.e. if the tenant brings a fridge/freezer into the property which starts an electrical fire are you covered. Landlords may also choose to take out rent guarantee insurance to cover unpaid rent if the tenant is still in the property.