Last Updated on Mar 12, 2020 by James W
Becoming a landlord might seem like a doddle to you. Simply find a tenant, move out, move them in, and voila! You have a steady stream of income rolling into your account month on month. Right? Wrong! Becoming a landlord is about so much more than that. Whether you’re planning to let one house or a couple of them, here’s everything you need to know to become a landlord now:
You Need a Buy to Let Mortgage
The first thing you need to let out your property is a buy to let mortgage. If you have a regular mortgage at the moment, you will need to chat with your lender to see what you must do to swap it to a buy to let mortgage. You can’t simply keep the same mortgage, as you could get in trouble with your lender if you get found out. Buy to let mortgages allow you to rent out your property legally.
You Can Get Help With a Letting Agent
There is a lot to think about when it comes to letting out your property. There’s the tenancy agreement, finding a tenant, getting a deposit, and a whole lot more. If this seems too much to you, remember that you can get help with a letting agent should you need it. They can either take care of absolutely anything for you, or simply help you with a few things you’re struggling with. They should also be able to give you good advice.
Your Property Needs to Meet Professional Standards
Your property will need to meet professional standards if you want to let it out. Again, a letting agent can help you with this if needs be. You’ll need to do security and safety checks. These will determine whether your property is safe to live in with your electrical appliances and furniture.
You Should Treat This as a Business
This venture should be treated as a business. Focus on being a good landlord and providing a good service to your tenant. To protect yourself, you’ll need insurance, so make sure you don’t neglect to get it. Anything could happen to your furniture or building, so you’ll need both contents and buildings. Your tenant will also need contents for their own things.
You Need to Be Prepared to Pay for Repairs and Maintenance
It’s up to you and you alone to pay for repairs and maintenance. The letting agent can sort this for you if you need them to though. Consider whether you’d prefer to get a call at 3 am from your tenant to fix a broken boiler, or a notice off your letting agent telling you what’s happened at a reasonable time.
Remember Your Property Won’t Always Be Occupied
In some cases, your property won’t always be occupied. You can state in the tenancy agreement that your tenant must stay for 6 months, but afterwards, they can leave when they choose. Then it’s up to you to find a new tenant. If you can’t, the bills and rent will be yours to pay.
Are you ready to become a landlord yet?
