Ten Top Tips for a First Time Landlord

 When you’re first starting out, beyond the basics of getting the property purchased and ready to rent out, remember that setting yourself up for success also means having the proper legal protections in place, which will save big legal bills and hassles down the road.

Here are some tips to help protect yourself when you’re starting out as a new landlord.

1)       Before you even consider renting out a property, you must consider - is letting right for you?

·          If you are thinking about letting out the house you currently live in, think carefully about whether or not letting out your home is a viable option for you, especially if you have a mortgage. Ask your lender for clarity on this.

2)       What type of property are you considering letting?

·         If you are considering a buy-to-let think about the type of property you want to invest in. To an extent this will dictate the type of tenant you are likely to attract. For example, a modern new build apartment will attract young professionals.

3)       Put it in writing

·         Ensuring you put everything in writing is the smartest thing you can do as a landlord. The most important detail to put in writing is the lease agreement between you and the tenant. If you ever have problems with the tenant, the lease agreement protects you and gives you legal rights that would be more difficult to prove without this documentation. It also makes clear that both parties have agreed to specific terms that can be referred to later if there is a dispute.

4)       Know the tenant financially

·         Start by having them complete a Rental Application, which will help collect the information you need to screen potential tenants.

·         Keep in mind that it’s much easier to find another potential tenant than it would be to evict a tenant who can’t pay any rent. Use ‘Tenant Referencing’ and send a ‘letter to request a credit reference’, which would verify the prospective tenant’s good credit.

·         To check prospective tenants have the funds, a landlord should ask the tenant’s employer for a ‘Salary Verification Letter’.

5)       Get a security deposit (Tenancy Deposit Scheme)

·         This shows that you care for the state of the property. This gives the tenant motivation to keep the property in the same condition as it was rented.

·         If the property does come back in poor condition, then you may be able to keep the deposit, as a method of paying for repairs/ additional cleaning of the property.

·         When a new tenant moves in, providing them with a ‘Rental Property Checklist’ will reduce disputes about the original state of the property.

6)       Understand your rights as a landlord

·         The key to being successful as a landlord is to know your rights.

For example;

·         You should be able to enter the property for necessary maintenance work; with the appropriate amount of notice given to the tenant.

·         You also have the right to evict a tenant if they are not upholding their end of the lease.

7)       Spend some money

·          Investing in some good quality, durable fittings & fixtures will ensure longevity in quality, raise the rental value and attract a better calibre of tenant.

8)       Furnished or unfurnished?

·         The majority of time unfurnished is recommended, as there is very low demand for furnished properties.

·         Renting has become far more popular and tenants move around more with their own furniture.

9)       Be realistic?

·         Pricing a property higher than its value is tempting, but also potentially dangerous as pricing property incorrectly can lead to long void periods.

·         Listening to your agent’s advice is crucial. They will suggest appropriate rental figures for the type of property and time of year.

10)   Use your head

·         It can be very easy to become too emotionally involved in a property, particularly if it was once your home.

·         Letting property should be considered as a business and the home for rent should be treated as such.

·         Leave it to your letting agent!

For more information and advice on becoming a first-time landlord, contact Discount Landlord on info@discountlandlord.co.uk.  

Gaurav Ahluwalia            

www.discountlandlord.co.uk