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A simple guide to becoming a landlord

by Sarah Dunsby
21st Aug 18 8:38 am

It’s more often than not that many people looking to move out or move to a new home are choosing to rent over the option of buying. In today’s world saving a large chunk of money towards buying a property is becoming more and more difficult and can bring a lot of financial strain along the way. For first time buyers in particular, the government are doing their best to help get you on the property ladder, with initiatives like help to buy ISA’s and affordable housing becoming more frequently heard of. For some people renting is a better option, whether it’s due to work commitments or being unable to save the funds for a deposit towards a house; meaning the need for landlords is increasing. Whether you’re a tenant or a landlord, there are many precautions you have to take to avoid unwanted financial issues.

Get covered

First things first, the correct cover is a must, for both you and your tenants. A lot of landlords will often only think about taking out landlords insurance but it’s important to check your tenants have contents insurance too. If you or your tenants are unsure about the correct cover for them, then you can suggest insurance companies like HomeLet, who can provide you with all the information you’ll need. By taking out insurance, both you and your tenants can be at ease and know that if any bad situations occur, you won’t be hit with a financial surprise further down the line.

Make it clear

Sometimes there can be misunderstandings when it comes to what tenants can and can’t do to the property. Some landlords are quite strict and don’t allow pets in the property and say no to any improvements being made. Whether you allow your tenants to keep pets in the property or not and allow small changes to be made are down to you, you need just to make this clear from the outset. A lot of tenants who have rented a property in the past, will more than likely be aware of the do’s and don’ts, but it’s best to cover your back and make the tenants aware.

Use an agency

Most landlords will opt to use a letting agency as the middle man between you and your tenants. If you work full time then it’s a good option to use a letting agency, whereas you may decide otherwise, if you have some free time. Using an agency means you’ll only be contacted when it’s necessary and they can deal with any other queries. It won’t always be your tenants who have questions, you may need some advice as well and your chosen agency will be happy to help wherever they can.

Why become a landlord?

People rent out properties for many reasons. For some people it’s a full time job, where others have inherited a property which they don’t want to sell. Becoming a landlord is another way of earning an income and if done correctly, can cause minimal hassle and financial strain on both parties.

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