Becoming a landlord is a fantastic way to set up a steady stream of income and secure a worthwhile investment, but for first-timers, the list of jobs and responsibilities can feel a little daunting. The good news is: there are plenty of useful resources available and you will be able to get the help you need to ensure that your rental property is bringing in the best yields, and that your tenants are safe and happy at home. Whether you’ve decided to invest in a buy-to-let property for the first time, or you’ve become an accidental landlord through an unexpected change in circumstance, here are the key things to take on board when venturing into your very first experience in lettings:
Do your research
The market is in constant fluctuation and it’s important to know about any current trends or legislative changes as these will directly affect you and your investment. A quick and reliable way of researching the current market is by having a look at rental listings nearby so that you can get a good idea about potential rental income and how high the demand is in that area.
However, the value of your property should be assessed by a professional before you decide on how much to charge in rent, otherwise you could risk under-pricing or over-pricing. Claim your free online valuation here, or contact us today to request an at home valuation to find out how much your buy-to-let property is worth.
Don’t forget about insurance
Finding the right insurance for your property is no easy task as property insurance is a huge industry with endless options and deals to choose from. Insurance required for landlords is slightly different than that of standard home insurance, and while there is no legal obligation to take out landlord insurance, it is advisable to take out a policy that will protect the building, your tenants, and your investment as whole. Some policies will also pay out if your tenant misses any rental payments, which is an important consideration if you have a mortgage to pay off.
Get to know your responsibilities
Taking on a property to let means taking on the responsibility of being a landlord. If it’s your first time, it’s imperative to brush up on the fundamentals of lettings legislation and property management; and once you’ve got to grips with the basics, you can decide whether or not to instruct a property management agency to help you with running your rental property. If you choose not to instruct the help of a letting agent, you must be prepared and have time for managing and maintaining each tenancy yourself. You will need to be on call and tackle any potential issues proactively such as a broken boiler or gas leak, any repairs and maintenance, and refurbishment of the property between tenancies when required.
If you’re interested in having your rental property managed, contact our team today to find out how we can help.
Check and fulfil all legal requirements
The most important step in preparing your property to rent is ensuring that you have adhered to current legislation and that the home is fully legal to let out to a tenant. As a landlord, there are several regulations which you must comply with. Right to rent checks are to be carried out at the beginning of any tenancy, along with additional paperwork required to register and protect your tenant’s deposit, too.
It is also imperative that all required gas safety checks are completed every year without fail, as well as thorough tests on all electrical appliances within the property to ensure your tenants are safe. Rental properties must have smoke and carbon monoxide detectors fitted, with one alarm on each floor of the property.
The law also commands that rental properties have a valid Energy Performance Certificate (EPC) and therefore you cannot market or let out your property without one. New legislation currently requires that all rental properties must have an EPC rating of at least ‘E’, otherwise energy efficiency improvements must be carried out to achieve a higher rating. This might include a new boiler, new windows or a new heating and water system. Your letting agent will be able to assist you in all these arrangements and offer the best practical solutions.
Choose the best lettings agent
Entering the buy-to-let market is an exciting prospect, but effective property management without any experience is no easy feat. It’s important to utilise the help of a professional to manage your property and guide you through all the tricky details. A good lettings agency will be able to take the weight off your shoulders and keep your rental property up and running while also ensuring that you secure the best possible yields from your first investment.
Ready to invest in your first buy-to-let property? Contact our team today for expert advice
