Last Updated on Mar 30, 2020 by James W
If you are thinking of earning an income from property, becoming a landlord can be a very lucrative way to do this. There are several ways you might fall into this. You may move in with a partner, leaving one of your properties vacant. You might inherit a property or need to move a parent into sheltered accommodation. Or you may choose to buy a property for the purpose of renting it out for income. This is often called a buy-to-let opportunity.
Becoming a landlord may require you to register with your local authority. And many places make it compulsory that you set up a special bank account to secure the tenant’s deposit payment. Beyond that, there are rarely any qualifications or certificates needed for you to become a landlord. However, it is important that you pick the right tenants for your property. And it is essential that you provide the level of service they expect so that they stay in the property long-term.
Some landlords use letting agencies. They can manage the vetting and day-to-day administration. However, this will slash your income quite considerably. If you are going to manage this yourself, be aware that there may be laws where you are protecting the data you hold about tenants. This information must be formally kept secure and destroyed in the correct manner when it is no longer valid.
The property needs to be of a good standard and in good decorative order before you let it out. You might just need to dust a few things. Or maybe you need to undertake some renovations to get it right. One of the most important things for the tenant is security. Keeping the property secure protects them and their belongings. Make sure the doors and windows are up to standard. You should also consider them as fire escapes. Your local fire department may be able to advise you of requirements.
Leasing your property to complete strangers may feel like a big risk. Accidents do happen and things inside the property will wear and tear. However, as a landlord, you may be responsible for putting things right if they go wrong. You may want to take out an insurance plan to help cover the cost of major incidents and repairs. The tenant’s deposit can be used if they are deemed careless or reckless.
When the tenant comes to the end of the lease, it’s up to you both to decide if renewing it is feasible. Sometimes tenants move on. You are then left with the challenge of finding new tenants. The longer your property is empty, the longer it is costing you rather than providing you an income. You will need to find an end of lease cleaning service that can bring your property back up to standard for the incoming tenant. It is easier to find a tenant if the property is immaculate when they come to view it.
Becoming a landlord could provide you with a good level of income. Careful vetting can help you find the right tenant to live in your property. Would you consider leasing your home?