Simple Guide and Tips for Being a Landlord
Whether you are becoming a new landlord or you are experienced, you will find it can be rewarding, but it comes with responsibilities. Here’s a simple guide to help you manage your rental property successfully:
1. Understand the Legal Basics
- Get Proper Permission: If you have a mortgage, check with your lender about renting out your property.
- Obtain Licenses: Some areas require landlords to have a license, especially for Houses in Multiple Occupation (HMOs)
- Right to Rent Checks: Legally, you must check that all tenants have the right to rent in the UK.
- Prescribed Information: Ensure tenants are provided with the following compliance documents and prescribed information before the start of the tenancy.
- Valid EPC with a rating of ‘E’ or above – This must be included on adverts & provided prior to moving in
- How to Rent guide – This is a government issued document which should be provided prior to your tenants moving in. This can be downloaded from the below website. https://www.gov.uk/government/publications/how-to-rent
- Deposit Protection Certificate – If you have an AST, the deposit must be registered and protected with one of the following government approved scheme. Tenancy Deposit Service, Deposit Protection Service, My Deposits.
- Valid EICR – This will need to be completed along with any required works prior to the tenancy start date. The report will need to be renewed every five years unless stated otherwise in the report. This must be provided to tenants if requested.
- Gas Safety Record – A valid certificate must be provided to tenants prior to the move in date. This will need to be renewed every 12 months with a Gas Safe registered engineer.
- PAT Testing – This is not a legal requirement however it is best practice to ensure all electrical appliances are safe to use.
- Inventory Report – Although also not a legal requirement, we would recommend this being carried out by a third party inventory clerk. This will provide yourselves and the tenants a detailed report of the properties condition and contents which will be useful should there be any deposit disputes.
2. Prepare Your Property
- Safety First: Install smoke alarms, carbon monoxide detectors, and ensure gas and electrical safety. Get a Gas Safety Certificate annually.
- Repairs: Fix any issues (e.g., leaks, damp) before renting out. Otherwise you will have unhappy tenants requesting the repairs.
- Clean and Presentable: A clean, well-maintained property attracts better tenants.
3. Set a Competitive Rent
- Research local rental prices using online platforms like Rightmove or Zoopla.
- Be realistic. A slightly lower rent can attract long-term tenants.
- Local independent lettings agents like Languard Property are perfectly placed to market your property, achieve the best rents and the perfect tenants.
4. Write a Clear Tenancy Agreement
- Use a professional agreement template, this will detail the follow:
- The names of all people involved
- The property address
- The start and end date of the tenancy
- The rent amount and how and when this will be paid
- The deposit amount and how it will be protected
- The tenant and landlord obligations
5. Screen Tenants Carefully
- Check references from landlords and employers. Verify income to ensure affordability.
- Right to Rent Checks – You must keep an up-to-date record of this.
6. Manage the Property Effectively
- Repairs: Address maintenance issues promptly.
- Inspections: Conduct periodic checks (e.g., every 3-6 months) but give proper notice.
- Keep Records: Log communications, rent payments, and expenses for taxes.
7. Stay on Top of Taxes
- Report your rental income to HMRC.
- Understand allowable expenses (e.g., maintenance, insurance) to reduce your tax bill.
- If unsure, hire an accountant.
8. Be Familiar with Local Tenant Rights
- Tenants are well informed. Understand their rights, including deposit return timelines and protection from unfair eviction.
- Speak to us to find out more about current regulations.
9. Prepare for Unexpected Costs
- Set aside funds for emergencies, like repairs or void periods when the property isn’t rented.
- Consider landlord insurance for extra protection.
10. Communicate Well
- Be polite, responsive, and professional. A good relationship with tenants often leads to fewer issues.
- Document agreements in writing to avoid misunderstandings.
11. Use Professionals if Needed
- If you’re busy, consider hiring a property management company such as Languard Property. We can handle the lettings process, maintenance, paperwork and accountancy leaving you free to do other things with your valuable time.
12. Keep Up with Changes
- Stay informed about changes to rental laws and market trends. For example, rules about energy efficiency ratings (EPCs) are tightening and the changes due to come into place with the Renters’ Rights Bill.
By following these tips, you can create a positive rental experience for yourself and your tenants.
At Languard Property, we offer a range of letting and property management services. Whether you are look for a basic package to help you get started or a full letting and management service, we are here to help. Contact us today for a hassle free, straightforward market appraisal.
