Top Tips For Landlords

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Our top tips on becoming a good landlord
“Be business-like about it. Treat your tenant well, and they will likely look after your business (most of the time anyway).”
Regardless of whether you are a first-time landlord or seasoned professional landlord we trust this information will assist you with letting a property.
In this blog, we will explore how a typical private landlord would go about to rent out their property and what is your legal requirements.

Legal obligation as a landlord

As a landlord, you would be your responsibility for a lot of things, here are just a few things you are obliged to have before you let your property?
  • You need to provide a gas safety certificate (A Gas Safety Certificate (also known as a CP12) is a legal requirement when renting out a property which has a gas supply to an appliance or the heat is gas. Gas safety certificates and inspections must be carried out by competent gas engineers that are Gas Safe registered.)
  • You also need to provide an Energy Performance Certificate (EPC)

(The EPC is needed by law once a building is built, sold or put up for rent)

  • The fire safety of furniture and furnishings that you offer, make sure furniture and fittings are fire safe

Mortgage

You need to check thoroughly to make sure that there are no restrictions on your mortgage. You will also need to inform your mortgage company and insurer if you intending to rent to someone else a property you have lived in as owner previously.

Tenants

Research on the property and the area to see if you appeal to the audience you want to target.
Depending on the type of property you have will determine the type of audience you will attract.
If you have a 4 bedroom house, you will likely attract a family and they would ideally be looking for a good school as well as shops and parks.
The flexibility on your tenant criteria will definitely influence the ‘let ability’ of the property. tenants with pets and tenants claiming housing allowance have huge list wanting to be maintained.
If a landlord would accept tenants under these circumstances, the chance of a property remaining empty is greatly reduced.

How rent should you charge?

Don’t make the mistake of being unrealistic with the asking price do your research or speak to us about free property valuation.

Factor In These Expenses

You will also need to factor in these expenses.
Furnished or not to furnish – Property may be let totally furnished, part furnished or unfurnished.
Maintenance – This does mean you will be solely responsible for resolving any issues with your property.
Any empty periods between tenants – You will need to consider it.
Tax – You will be liable to pay tax on your gross income from rents and will be able to
deduct from them your day to day running expenses. For further details contact your nearest
Tax Enquiry Office or Tax Office or look at the Her Majesty’s Revenue and Customs website:
Estate Agent fee – Using a letting agent to find tenants and manage the property can be appealing as it theoretically means that you can just sit back, let us do all the hard work and collect the rental income from the property.
However, bear in mind that some letting agents will usually charge up to 15% of the rental income to manage a property, which can seriously cut into your returns but here at Tulsa Burg we can manage your property for as little as 6%

Insurance

There is various type of insurance it is usually worth getting as a landlord. The main ones to consider are:
  •  Buildings insurance – Covering the cost of repair and replacement for the property itself e.g. after fire or flooding.
  •  Contents insurance – Even if the property is let unfurnished, it is still worth getting cover for items such as carpets, white good etc.
  •  Emergency home cover – Provides cover in case of an emergency such as a burst water pipe or gas leak that requires immediate repair.
  •  Liability insurance – This covers you if a tenant is injured in the property.
  •  Loss of rent insurance – Protects you if tenants fail to pay their rent or the property cannot be rented for an extended period. Worth considering if you are buying the property with a mortgage you would struggle to cover without the rental income on the property.
  • Legal expenses insurance – Can cover the cost of legal action, for example, if tenants need to be evicted.
  •  Warranties on white goods – Put electrical appliances and boilers under extended warranty.
 

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Reference

Once you found your ideal tenant, you want to ask prospective tenants for a reference which consist of a former landlord, employment and right to rent to reduce your risks.

Inventory

Agree to an inventory with your tenant at the start of the tenancy. This will make things easier if there’s a dispute end of the occupancy.

Tenancy Agreement

When you rent your property to a tenant, it’s usually an assured shorthold tenancy (unless it agreed on otherwise in writing)
What should assured shorthold tenancy should mean to you?
Its the most common type of agreement used by most landlord, AST (Assured shorthold tenancy) its typically for 6 months but can be longer, that’s for you/agent to negotiate with the tenant.
• you’ve got a guaranteed right to get your home back after six months
• You can charge a market rent
• you’ll be able to get your home back if your tenant owes you a minimum of 2 months or eight
• A tenant that causing a nuisance to the neighbours can be evicted.

Deposit

Protect your tenant’s deposit in one of the three government-authorized Tenancy Deposit Protection schemes. This is a legal demand if you utilize an assured shorthold tenancy agreement.
A productive landlord is one who doesn’t have a craving for shouting when the telephone rings. It’s someone who truly anticipates the beginning of the month once the rent money starts to coming in. It’s somebody who runs a tight ship with frameworks that can deal with the huge waves that are certain to come.
Success is feasible as a landlord if the correct steps are taken. Ideally, this post has helped you make those initial few steps in improving your business.
If you have got any doubt concerning the legality of your letting a property privately, I suggest for you to seek legal advice from an appropriately qualified professional, like a solicitor. the information contained inside this blog isn’t to be taken as a legal recommendation, rather as a degree of reference and general guide.
We do hope you may be able to find the answers here but, if you’d need to speak to a professional letting agent, or you have got any questions about letting your property, call 0203 490 3937
Let’s Discuss!
Have you committed a genuine error or found out about a friend who made mishaps as a landlord? Please share with us some of your landlord tips!

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