The downturn in UK property valuations has lead many existing homeowners, some of whom are desperate to sell up, to consider alternative ways to cash in on their current property, without having to sell it below their expected valuations.
A fairly noticeable proportion of these vendors are choosing to become first-time landlords, rather than settling […]
A fairly noticeable proportion of these vendors are choosing to become first-time landlords, rather than settling for a below market offer.
The prospect of more reluctant or accidental landlords entering the private rental sector (PRS) is not such welcome news for the UK rental property market. Ill advised or inexperienced landlords often make mistakes or cut corners in order to preserve cash flow or increase rental yield.
Any bad business practices can be perceived by some to be the actions of a rogue landlord, prompting Legal 4 Landlords to issue some general guidance advice for new, first-time and inexperienced landlords
All landlords need to comply with the current UK regulations and the following points are highlighted as essential:
• All prospective tenants should be thoroughly referenced and credit checked by a reputable agent, to ensure financial ability to pay the rent and gain an insight into the suitability and character of the tenant.
• Provide a proper Assured Shorthold Tenancy agreement (AST) signed by both Landlord and the tenant, outlining the length of the tenancy, amount of rent, date rent is due, and details of which government deposit protection scheme is to be used.
• At the start of the tenancy walk round with the tenant and conduct a detailed inventory describing the condition of all the fixtures and fittings of the property in detail, along with the furnishings.
• Gas appliances must be checked annually by a registered Gas Safe engineer and the landlord must provide the tenant with a copy of the Gas Safety Certificate (CP12).
• The landlord should take out comprehensive Buy-To-Let or Landlord insurance to protect their property asset.
• All repairs should be fixed promptly and only use reputable tradesmen that you know and trust to tend to the property, this is extremely important if emergency repairs must be done at short notice.
• If using a lettings or property management agent remember to conduct Due Diligence on them thoroughly and make sure as a landlord that you are happy with their terms and conditions before appointing them.
There are currently a record number of people searching for suitable rental properties in the UK, meaning that would-be landlords should have no problem finding a willing tenant, providing their properties are fit to rent.
New and first-time landlords should note that letting a property can be stressful and time consuming, as well as a very financially and personally rewarding experience, and is an effective way of providing an additional income.
Prospective landlords will need to remember they are effectively starting a business that centres on property and must remember to treat it as such.
Legal 4 Landlords are the UK’s fastest growing Tenant Eviction specialists who also offer a wide range of useful services for landlords including Tenant Referencing, Landlord and Tenant Insurance policies and Rent Guarantee insurance.