Top tips for landlords or common sense
Top tips for Landlords with residential property
We look to review these on a regular basis to see if any of the tips have changed or if something really new has come into play with a dramatic impact on being a landlord.
Even now with all the legislation, most landlords will tell you that renting out a property, when done correctly will be a good investment and provide a steady income, and potential for a stable financial future.
However, there are pitfalls we all need to be wary of. We like to be preventive where possible so we have come up with a few ideas that should help you with being a successful landlord
- Treat it like a business, not a charity or a hobby. – investing in property is the biggest financial commitment you will make. Identify your market and do your homework. Make sure you invest in an area that will attract the returns.
- Correct Documents – Invest in a good tenancy agreement that protects landlord and tenant.
Carry out due diligence checks on the potential tenant such as credit checks, references and guarantors
- Take a deposit and make use of one of the deposit schemes currently available. Many landlords are now aiming for at least two months rent as this appears to help deter tenants from withholding rent and it helps should you have to evict your tenant for any reason. As mentioned above ensure you protect all deposits received with an approved Government scheme.
- Inventory – Carry out a full check in, midterm and check out inspections, highly recommend the use of photos and videos and have the tenant sign to agree.
- Meet the tenant and don’t be afraid to tell them how you expect the tenancy to be conducted. Maintain landlord and tenant relationship and never cross the line to become a friend or agony aunt, always stay on the right side of the law.
- Provide good accommodation – clean, damp free, heated and well ventilated. A property in decent state will demand better calibre of tenant and higher yields. Stay on top of repairs. Don’t allow any excuse to withhold rent or for them to complain to the local authority, especially if further down the line you have to remove your tenant.
- Safety regulations – make sure your gas, electrical, HMO licence, insurance, and Energy Certificates are up to date.
- Rent payment – do not become complacent. Check your bank statements every month when the rent is due.
- Act Fast – if the tenant falls in arrears or constantly late with their payments, this is a warning sign that that you need to take action. Legal notices need to be served. The matter may result in applying for a possession order and a judgement for arrears.
- Never enter in a property without the tenant’s permission or before a possession order is granted. Never change the locks in haste. At times, the penalty is far greater than the accumulated arrears.
Are these just good common sense, would you add anything to them?