If you like the idea of becoming a landlord and renting out a property you own, you’re not alone; it’s a dream that many people have, and because it’s a relatively easy sector to get into – as long as you have the money – it’s something that a lot of people have chosen to do (especially as the UK rental sector is said to be growing and by 2030 two thirds of people will be living in rented accommodation).
However, just because you can do it doesn’t necessarily mean you should – there is a lot to think about first. Here is a guide to help you decide whether or not it’s the right thing for you, and what to consider once you start.
Should You Use A Property Maintenance Company?
If you like the idea of being a landlord but you’re worried about the responsibilities and the work you’ll need to do to get the property ready as well as maintain it in the future, you might think that you can’t fulfil your dream and you’ll need to try something else.
There is a solution, however. When you see how a property management company can solve your lettings headache you’ll realise that you can be a landlord and let someone else take on the harder elements of the job. A good property manager will deal with every aspect of renting the property out from screening tenants to collecting rent to handling the upkeep. You can then relax and enjoy the rewards.
If you choose to go ahead with outsourcing the management of your property, there are many letting agents to choose from. First, identify a shortlist of who you’d like to consider, then research what to ask a letting agent before making your final decision. Consider asking around your contacts to see if you can get a personal recommendation.
Whilst we are on the topic of using outside parties to help you manage your affairs, why not consider using a landlord credit bureau reporting agency to help you keep on top of things. It’s a win-win for both you the landlord and also for the tenant.
Are You Ready For The Responsibility?
There are many, many benefits to renting out a property and being a landlord, and the money you can make – especially if you have more than one property – is certainly attractive. However, there will be work to do, and it is a responsible job to take on, and you must be ready for this responsibility if you are going to be a good landlord.
Responsibilities that you will need to consider include maintaining your property, ensuring that any repairs are done promptly, collecting your rent, and dealing with all the legalities and paperwork that come with the rental of a property. If you don’t do this well, not only could you lose money, but you might also gain a reputation for being a bad landlord, and finding good tenants would be a hard thing to do after that.
Is The Property Ready?
Perhaps you have inherited a property. Maybe you’ve moved in with someone else and have a ‘spare’ house or flat. Maybe you’ve found a great deal on a house and bought it for much less than the market value because there is so much work to be done to it and it needs plenty of modernisation. This is just the beginning of your landlord journey, not the end. It’s not even the middle.
Before anyone is going to be able to live in the property, you’ll need to ensure that it’s ready for habitation. This might be a small job or a big one, but renting it out too early will only mean that your tenants are not happy – and potentially that they are not safe either. Making the house ready for tenants will cost you some money, whether it’s a complete refurbishment or a new coat of paint and a tidy of the garden. Do you have the funds, the time, and the energy to do this?
