Welcome to our concise guide to becoming a landlord. Are you thinking of becoming a landlord or extending your current roster of buy-to-let houses? According to the Office for National Statistics, over 4.5 million households within the UK live within the private rented sector (2017). This is an increase of 63% across a decade – meaning now is as good a time as any to consider becoming a private landlord.
This guide is aimed primarily at new landlords embarking on their first buy-to-let journey. However, it can also prove to be useful for landlords with previous experience too. We will discuss how to start being a landlord, your legal obligations as a landlord and some frequently asked questions too. So, without further ado, let’s talk about becoming a landlord!
As a short and fast overview, there are several things a landlord should do to abide by the private renting rules set out by the government (England and Wales only). As a landlord you should:
If you are a landlord or thinking of becoming a landlord in Scotland or Northern Ireland, the rules will be different for you.
Of course, this is just a basic overview and there is much more to becoming and being a successful landlord. More detail and information can be found in the FAQ section at the end of this guide.
The biggest incentive for becoming a landlord, in the vast majority of cases, is the potential to earn additional income. Your tenant’s rental payments will cover any monthly mortgage repayments on your rental property and provide a little profit too. The more properties you have, the larger your rental income will be. If your mortgages are paid off, then the amount of income you can earn increases significantly.
Nevertheless, there are many costs associated with being a landlord. Investment property and making money from rental properties can be lucrative, but the general rule remains the same: the bigger your portfolio of properties is, the more costs you’ll have.
Costs that you need to consider as a landlord include:
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.
What Are My Legal Obligations as a Landlord?
As a landlord, it is your responsibility to:
Do I Need to Hire a Lettings or Property Management Agency?
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.
What Are My Rights as a Landlord?
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.
Are you looking for assistance with your property management? Perhaps you’d like some more information on how we can help you become a successful landlord. Just get in touch with us today for a chat and we can advise you accordingly.
Dramatically reinvent market-driven relationships vis-a-vis customer directed e-business. Monotonectally incentivize distributed e-markets through high standards in.
Sadly John passed away in the Spring of 2021, his influence on Gareth, Laura and the business will be an ever present one.
Consultant/Charted Surveyor
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