Becoming a landlord sounds like a pretty easy way to make money doesn't it? All you need to do is...
Becoming a landlord sounds like a pretty easy way to make money doesn’t it? All you need to do is make your house look attractive, rent it out to someone looking for somewhere to live and then receive the rent each month. Easy. Right?
Although being a landlord can actually be pretty lucrative, it has to be done correctly AND legally. Whilst it sounds easy on paper, there is actually more to it than you may initially think.
However, it doesn’t have to be an overly complicated process. As experts in property letting, we’ve used our expertise to put together a detailed guide to becoming a landlord.
Finding a Property
If you don’t already own the property that you’re looking to rent out, the first thing you’ll need to do is find the perfect one and it’s important to start looking ASAP. A good investment is essential with buy-to-let, so you’ll have to put the time in researching different locations. After all, location is always the key! You should consider factors such as transport links, schools and hospitals. These are all things that make a property more attractive to renters. It’s also worth considering your target market. Students? Families? Single professionals?
You could go it alone but it’s definitely not recommended. As a first time landlord, it’s much easier (and safer) to seek the help of an estate agent. Not only will they know exactly what is required from you, they also know the property market inside out. Their advice on issues such as locations will be instrumental in you becoming successful. Your letting agent will also advise you on the amount of rent that you should be charging.
Health & Safety Certifications
As we said at the beginning, renting out a property isn’t as easy as buying a property and renting it out. As a landlord, you have a responsibility to make sure that your property is safe and secure. To do this, there are a number of things you need to have carried out.
Ensure the property is Gas Safe – You need to arrange for a Gas Safe engineer to come out and inspect the property. If everything is fine, you’ll be awarded with a satisfactory Gas Safe certificate.
Energy Performance Certificate – An EPC is a legal requirement for landlords. This is a certificate that confirms that the property is energy efficient.
Fire protection – You must ensure that there is a sufficient amount of fire alarms fitted into the property and that they are in fully working order.
It’s important to take our landlord insurance to make sure that you are fully covered if anything was to go wrong. It’s important to make sure that you take out the correct policy to make sure that you’re 100% covered. Contents insurance is a must for property that is rented as furnished, whilst building insurance will cover for accidents such as burst pipes and broken windows.
Protect the Deposit
A deposit is a sum of money that you take from your tenants at the beginning of their tenancy – in case any damage happens during their time in your property. This deposit should be placed in a Government approved deposit scheme – for both yours and your tenants benefit.
After you’ve completed all of these steps – it’s time to find your tenant. Your letting agent will be able to advise you on the correct steps to take
If you would like to speak to an expert about your options when becoming a landlord, please don’t hesitate to contact us here at Belvoir Sutton Coldfield. You can give us a call on 0121 321 3388 and we will be more than happy to make you an appointment to come and speak to one of our professional and friendly members of staff.