How to be a Successful Landlord – Ten Top Tips
There are a rising number of landlords in the UK today, with reports of considerable numbers of first time landlords entering the market. With interests rates at an all time low, those with savings are now looking at the rental market as a way of generating an income. The rental market is showing good resilience at present as some first time buyers struggle to access a suitable mortgage and look for accomodation.
If you are one of these ‘unplanned’ landlords and are considering this option for the first time, you must be both eager to take advantage of the opportunity and considerate to the possible risks involved. We have produced some handy tips that will help you take this step boldly and confidently.
Here are our top ten of the most important tips to keep in mind when renting out your property:
1. Who you rent your property to is one of the most important considerations. It is vital that you’ll receive your rent on time, your property is maintained to its current state and it will not be used to engage in illegal activities. Some of these pitfalls with potential tenants can be avoided by running a background check on each potential tenant in advance. Ask for references and make sure you follow them up !!!
2. Have a legal rental agreement drawn up. Document all relevant details and terms of agreement including the ways in which the tenant complaints will be dealt with, the notice you need to give your tenant if you want them to vacate and vice-versa, whether or not pets are allowed etc. There are now some great resources which can be utilised online where standard agreements can be cheaply accessed. Landlord-Law has a wealth of easily understood, up to date information and resources for the new or exisiting landlord.
3. Settle on the method for collection of a deposit. Tour the rental property with the tenant and make a note of the condition in which things are. Get him to sign this to ensure that they understand and agree to the fact that money will be deducted from the deposit for any damages caused during their stay.
4. Make sure you act promptly when notified about repairs that need to be undertaken. This helps to fix the problem before it gets worse and also helps you avoid lawsuits that a tenant might file if he’s injured as a result of the delay in repairs. To be on the safe side make sure you have property and liability insurance to cover you against such a situation.
5. If you choose to hire a manager for the care and upkeep of your property, do so with care because any crime or incompetence on his part is your financial responsibility.
6. Don’t encroach on your tenant’s personal time and space. If you need to visit the rental unit for some reason, make sure you notify them well in advance and agree on a suitable time.
7. If there are any health risks involved in living in your rental unit, it’s important you disclose this to your tenant in advance. Landlords are now being held responsible for any health issues developed by tenants as a result of residing on a rental premises.
8. If any problem arises, try your best to resolve it without involving the police or lawyers. If a chat doesn’t get the message across, then pay for a third party to attempt the same. If you need to claim your rent, it maybe an option to approach the small claims’ courts.
9. Make sure you provide adequate safety facilities on your premises. There’s a good chance you’ll be held responsible for any losses suffered by your tenant due to lack of security.
10. When your tenant has moved out, take the keys back but also change the locks on the door.
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