Simple Guide and Tips for Being a Landlord
Becoming a landlord can be incredibly rewarding, whether you're a beginner or an experienced property owner. However, it also comes with important responsibilities. Here's a straightforward guide to help you effectively manage your rental property and ensure success.
1. Understand the Legal Basics
- Get Proper Permission: If you have a mortgage, check with your lender to confirm you’re permitted to rent out your property.
- Obtain Licenses: Some areas require landlords to hold specific licenses, especially for Houses in Multiple Occupation (HMOs). Review local regulations to confirm whether your property needs licensing to remain compliant with the law.
- Right to Rent Checks: Legally, you must verify that all tenants have the right to rent in the UK.
- Prescribed Information: Before the tenancy begins, provide your tenants with the following essential documents:
- Valid EPC (Energy Performance Certificate): Must have a rating of ‘E’ or above. Include this in advertisements and give it to tenants before they move in.
- How to Rent Guide: A government-issued document that must be provided before tenants move in. Download it here.
- Deposit Protection Certificate: If you use an Assured Shorthold Tenancy (AST), the deposit must be registered and protected in a government-approved scheme (e.g., Tenancy Deposit Service, Deposit Protection Service, or My Deposits).
- Valid EICR (Electrical Installation Condition Report): Must be completed before the tenancy start date and renewed every five years unless otherwise stated.
- Gas Safety Record: A valid certificate must be provided before the move-in date. This must be renewed annually by a Gas Safe registered engineer.
- PAT Testing (Portable Appliance Testing): Not a legal requirement but considered best practice to ensure electrical appliances are safe.
- Inventory Report: Not legally required but highly recommended. Conducted by a third-party inventory clerk, it provides a detailed report of the property's condition and contents, helping to resolve deposit disputes.
2. Prepare Your Property
Prioritise Safety
- Install smoke alarms and carbon monoxide detectors.
- Ensure all gas and electrical systems meet safety standards.
- Obtain a Gas Safety Certificate annually.
Complete Repairs
- Address any existing issues, such as leaks or damp, before renting out the property. Neglecting these can lead to tenant dissatisfaction and frequent repair requests.
Maintain Cleanliness and Presentation
- A clean, well-maintained property is more appealing and will attract high-quality tenants.
3. Set a Competitive Rent
- Research the Market: Use platforms like Rightmove or Zoopla to compare local rental prices and understand the market rate.
- Be Realistic: Setting a slightly lower rent can help attract reliable, long-term tenants.
- Consider Professional Letting Agents: Local agents, such as Languard Property, can help market your property, secure competitive rental prices, and find the ideal tenants.
4. Write a Clear Tenancy Agreement
A solid, professional tenancy agreement is crucial for outlining terms and ensuring clarity for both parties. Your agreement should include:
- Names of all parties involved (tenant(s) and landlord)
- Property address
- Start and end dates of the tenancy
- Rent amount, payment method, and due date
- Deposit amount and protection scheme details
- Obligations of both tenant and landlord
5. Screen Tenants Carefully
- References: Check references from previous landlords and employers. Confirm the tenant's income to ensure they can afford the rent.
- Right to Rent Checks: Legally, you must verify the tenant’s right to rent in the UK and keep an up-to-date record of these checks for compliance.
6. Efficient Property Management
- Repairs: Respond quickly to maintenance issues to maintain the property’s condition and tenant satisfaction.
- Inspections: Schedule regular inspections (e.g., every 3–6 months) with proper notice to tenants, ensuring the property stays in good shape.
- Record Keeping: Keep thorough records of all communications, rent payments, and expenses for tax filing and future reference.
7. Stay on Top of Taxes
- Report Income: Ensure you report your rental income to HMRC accurately.
- Understand Allowable Expenses: Familiarise yourself with deductible expenses (e.g., maintenance, insurance) to minimise your tax burden.
- Seek Professional Help: If you're uncertain about taxes, consider hiring an accountant to guide you.
8. Be Familiar with Local Tenant Rights
- Know Tenant Rights: Tenants are well-informed about their rights, including the timely return of deposits and protection from unfair eviction.
- Stay Updated: Speak to experts or legal advisors to learn more about current tenant regulations and ensure compliance.
9. Prepare for Unexpected Costs
- Emergency Fund: Set aside funds for unexpected costs like repairs or void periods when the property is vacant.
- Consider Landlord Insurance: Protect yourself with landlord insurance for additional peace of mind.
10. Communicate Effectively
- Professional Communication: Be polite, responsive, and professional. A positive relationship with tenants often leads to fewer issues.
- Document Everything: Always put agreements in writing to prevent misunderstandings.
11. Use Professionals When Needed
If you're short on time, consider hiring a property management company like Languard Property to handle lettings, maintenance, paperwork, and accounts, allowing you to focus on other priorities.
12. Keep Up with Changes
- Stay Informed: Keep up with updates to rental laws and market trends, such as changes to energy efficiency ratings (EPCs) and upcoming changes in the Renters’ Rights Bill.
By following these steps, you can create a positive experience for both yourself and your tenants.
At Languard Property, we offer a range of letting and property management services. Whether you're looking for a basic package to get started or a full-service solution, we're here to assist. Contact us today for a straightforward market appraisal with no hassle.
