If you’re a first-time landlord in the rental business, there are lots of things to learn to maximise the profits of your new business venture. Take a few minutes to check out our 10 tips for first-time landlords.
Using a property manager can seriously eat into your margins. London property managers typically charge 10-30% of the rental value. With these kinds of charges, you’ll be forced to raise the rental value making your property less competitive. It’s easy enough to manage properties yourself. Start by managing one property and then as your portfolio gets larger, you’ll be organised and able to scale the task. Check out our quick guide on how to manage properties.
Like everything in life, you may as well be better at something than just getting by. You can be a better landlord by taking some simple steps. When you’re a better landlord, your tenants will be happier and are likely to stay longer. Not just that, by following simple steps you’ll be making life easier for yourself.
Some of these tips for being a better landlord are common sense and some you might not have considered.
Boy Scouts across the World will tell you the importance of being prepared. And it’s no different for landlords. One area where preparation pays off is knowing what expenses to be prepared for when renting out a property and avoid unexpected costs.
Renting out a property can be very profitable and even enjoyable. When done correctly, it’s an asset earning you money as you sleep and who doesn’t like the sound of that. The best landlords have clear budgets and an understanding of the costs they can expect to fork out on.
But even the best have been caught out by expenditure that seemingly came out of the blue.
Here are eight awesome tips to help landlords to avoid unexpected costs.
The idea of being a landlord is very appealing. It conjures up notions of being able to sit back on rental income and never have to work again. But that’s not true – and if that’s what you thought being a landlord is all about – then it’s probably best you reconsider. For sure, letting property can be a very lucrative business, but it’s also risky, and plenty of landlords have found themselves in dire straits financially and legally when they haven’t done things right. That being said, it’s possible to become very wealthy with a buy-to-let portfolio.
We’ve prepared a checklist for all new landlords before renting a property. It won’t absolve you of all problems down the line. But if you follow these steps, you’ll hopefully save yourself a lot of possible future issues.
Generally speaking, tenancy agreements, once signed, are binding. It’s not necessarily straightforward to change a tenancy agreement, such as would be required if the landlord is interested in adding or removing a person or persons to the terms of the agreement. There’s no way for one party to force these changes through while still remaining compliant with the relevant regulations specified in UK law. Rather, any changes to the tenancy agreement must be mutually agreed upon by both the lessor and the lessee.
Either a new agreement can be drawn up, or the original on can be amended. Be careful, though — verbal agreements on their own aren’t binding, although they can be reinforced by written evidence. One example of a way a verbal agreement could be ratified is by both parties agreeing to a change in the amount of money to be paid in terms of rent. Because there will be receipts and invoices to create a paper trail, the verbal agreement can be proven if need be.
- What is landlord’s insurance?
- What does this insurance cover you for?
- Is landlord’s insurance more expensive?
- Is this insurance a legal requirement?
- Do I need this insurance if renting to family members?
- Do I need this insurance if I live in the property?
- Do I need landlord’s insurance and building’s insurance?
- Things to remember
So you’re looking to rent out a property, but you’re baffled by insurance. What is landlord’s insurance, and will a typical homeowner’s policy be adequate?
- What is a tenancy agreement?a
- What are the types of tenancy agreements, and which should I use?
- Assured Shorthold Tenancy Agreements
- Assured Shorthold Tenancy Agreements (Room only)
- Excluded Tenancy Agreements (Lodgers Agreement)
- Company Let Agreements
- Non-Assured Tenancy Agreements
- Assured Tenancy
- Regulated Tenancy
- Adding additional terms to your tenancy agreement
- Important things to remember
If you’re renting out a property, you’ll need to provide a tenancy agreement. However, there are many types of tenancy agreements, so it can be confusing to know which one to use. After reading this five-minute guide, you’ll be confident you know which contract you need.
- What is a security deposit, and how much can I ask?
- When is it paid?
- Do I have to charge a deposit?
- What is the deposit protection scheme?
- What do I need to know about deposit protection law?
- What are the penalties for not abiding by the deposit protection law?
- What schemes can I use?
- Must I hand the deposit over to the scheme?
- How to avoid disputes with your tenants?
- Do I need to return the whole deposit and how long do I have to do this?
You’ve made the ideal investment and have furnished your rental property, so you’d be happy for your granny to move in. Save, she isn’t. You’ve checked the references of your soon-to-be tenant. But you also want to take a security deposit to protect yourself from any damages down the line. Here’s the lowdown on what you need to know.
Selecting the perfect tenant for a rental property in the UK is an important job, but that doesn’t mean it’s easy. There’s a lot to take into account to find great tenants; due diligence should be your top priority. After all, the last thing you want is to wind up in a situation where the tenant doesn’t pay the rent, and you have to enter into a prolonged dispute period.
Here are four steps you can take to ensure that the tenant you end up choosing will be a good fit for your property. The ideal tenant will pass each of these steps one by one, but they’ve been designed to weed out poor candidates.