Becoming a Landlord

Costs that you need to consider as a landlord include:

• Buy-to-Let Mortgage Costs: Most likely to be your largest regular outgoing. If you make a large deposit then you’ll secure a better deal. Taking out a variable-rate mortgage (like a tracker) will mean you are at the mercy of the Bank of England base rate. Your mortgage payments will rise if the base rate does.
• Repair and Maintenance Costs: If you have well-behaved and respectful tenants who actively maintain and preserve your household whilst they are living there, then your repair costs should be relatively low. It’s hard to put a price on maintenance as every property is different, and you will know more about it than anyone. The ‘little and often’ approach is advisable for general maintenance tasks as it can often keep costs down in the long term.
• Agency or Property Management Fees: Using a letting agent and a property manager can be extremely handy because they can take care of all the nitty-gritty stuff and paperwork for you, including tenant and property management. They can collect rent, deal with tenant issues and queries and conduct inspections on your behalf.
• Refurbishment Costs: Putting some money aside for refurbishments is a wise idea, so the cost doesn’t hit you all in one go. You will probably need to redecorate parts of your property every few years.

Landlord Insurance: Taking out landlord insurance is a wise idea. In fact, if you wish to apply for a mortgage, your lender will usually expect you to have this in place. Costs will vary depending on the type and location of your property, and the level of cover you want.

As a general overview for the very first initial stages of the journey, there are 7 steps you need to follow to start being a landlord.

• Ensure you understand what being landlord entails by following this guide
• Check if you are allowed to let your property
• Understand and abide by your legal obligations as a landlord
• Choose whether you want to use a lettings agency or manage the property yourself
• Prepare your property so it is ready for tenants
• Find and reference tenants – or leave the hassle to your letting agency

What Are My Legal Obligations as a Landlord?

As a landlord, it is your responsibility to:

• Ensure the property is insured against damage like fire and flood
• Ensure that any gas equipment has been installed by a registered Gas Safe engineer
• Ensure a registered Gas Safe engineer conducts annual safety checks on gas appliances
• Provided your tenants with a gas safety check record
• Ensure electrical safety throughout the property
• Get an energy performance certificate (EPC)
• Carry out ‘Right to Rent’ checks when setting up a new tenancy agreement.

Here at JonSimon, our job is to handle the day-to-day management of your property. We can advertise your property, find and vet your tenants and handle your maintenance or property repairs too. We can handle all property inspections, make sure that documentation is legally compliant and conduct all other property management tasks on your behalf. If you’d prefer to be more hands-off, or if you have other projects going on elsewhere, then using a letting agent is a wise move.

You own the property but as a landlord, you no longer have the right to enter it of your own free will. You must give your tenants at least 24 hours notice before you enter the property, even if it is to carry out some agreed refurbishment or repairs. You do have the right to request that the tenant leave the property, or bring legal action if the monthly rent is unpaid or the contract terms are broken.