In recent years there has been a rise in the number of first time landlords. Many people have chosen to invest their savings into property, with the boom in the housing market in the 1990s making this a good prospect for maximising the income you can make through savings. Owning two properties – one to live in and one to rent out, is no longer unusual, and the popularity of programmes like .’Homes Under The Hammer‘ has proven that being a landlord can be a good income choice.
All property portfolios have to start somewhere, and a property portfolio can see a start to a career as a real estate developer. In the current climate many former retail and business properties could well see new use as homes and apartments, and now is a brilliant time to get into property. Damon Becnel is a perfect example of a real estate developer who has an eye for the right property and how it can be changed, developed and improved upon.
If you are looking at getting into property, either in terms of renting out property and building up a portfolio, or in order to develop it for new use, there are things that a landlord can do to make renting a smoother, safer process for both themselves and their tenants.
1. Establish a good relationship with your tenants.
As a landlord you need to establish a good working relationship with your client. This means keeping your property in good condition, being approachable in case of any issues in the house and listening to your tenants concerns. However it is not all one way traffic and as a landlord you should feel able to check up on your property regularly, especially if you have any concerns about how it is being used.
If your property is furnished, have a full inventory of what is in the property, as well as some photographs of home and furnishings at the point of handing over the keys, these could be useful if you have any problems later down the line. Keep a file of warranties for appliances and correspondence with your tenant.
Taking out landlords building insurance and content insurance is absolutely essential. HomeLet offers lots of help in this area and can help you make a good saving on any policies you take out.
You may not be living in the house, but the risk of damage from fire and flood is still a possibility, whilst there is also the added danger that your tenant may suddenly not be able to pay their rent, which could leave you out of pocket. Look for insurance policies that have a rent guarantee. This ensures that if your tenants are unable to pay their rent, you will still receive the money you are owed.
3. Make Sure you Know the law
There are lots of legislation when it comes to renting out your property, so you need to make sure you read up on all the laws and rules around renting before you jump in. You particularly need to look at safety legislation and laws around the rules of entry before you take the step of becoming a landlord.
In addition, you need to make sure your contracts and tenancy agreements are all legal and above board, so make sure they are all checked and watertight by drawing them up with a property solicitor.
4. Use tenant referencing
Most tenants are exemplary, they pay their rents on time and keep their properties spotless and faultless. But there are problem tenants. These are the sorts of tenants who may accrue arrears and may even run out on you without settling all their debts, leading to you needing to find out how to trace someone in order to recover outstanding debts.
To try to avoid these you can use a tenant referencing service. This will check all aspects of your tenant, from employment history to previous tenancies, along with any problems they may have had with landlords in the past. This can help you make an informed decision.