Becoming a landlord and renting your home out can be a great way to earn money. It will give you a reliable income and in this day and age, property is one of the only things that people are still pouring money into for investments and to live in.
Most people are still keen to get on that elusive first rung of the home ownership ladder, but not all of us can afford it. There is still a steady stream of people out there who are not in the position to buy and would love to rent a property out.
There are a few essential things to remember when becoming a landlord for the first time. You will need to look into all of the legalities as well as creating a basic new landlord checklist to refer back to before you sign up your first tenants.
You must be able to afford regular property maintenance so make sure that you budget correctly from the start.
How to rent out your property: You might have found the perfect property but how do you go about renting it out? You could let an estate agent do all of the work for you and completely hand your property portfolio to them. For a small commission they will manage your tenants and collect your rent for you.
If you don’t want to pay someone else a cut of your profits, you will need to work on your marketing skills in order to get your property advertised. If you have a website and a portfolio for your rental properties then think of ways to promote this as well.
Property maintenance: there will always be things that need replacing in any rental property from time to time. You could have the most respectful of tenants and things would still break or go wrong.
Regular smoke alarm checks help when dealing with corrosion management. Ensure that your tenants carbon monoxide alarms and boilers also receive regular maintenance.
Furnished or unfurnished? Do you want to let your house out as a furnished property or an unfurnished property? If you let it as furnished, remember that you will be responsible for some of the maintenance costs.
Damage risks: with any property rental, there comes the risk of your home being damaged in some way. Unless it is proven to be the tenant’s fault, there is every chance that you might have to pay for the maintenance of any problems.
Weather conditions: the weather plays a surprisingly big part in how much you will have to maintain your property. If we have a spell of lovely dry weather, your maintenance will be lower than that of weeks of wet and windy storms.
Tiles are guaranteed to come off the roof at some stage, and there will be leaks. As a landlord, you will be required to maintain and update all the exterior aspects of your house.
Think about what you can afford, and how involved in the process you want to be. Becoming a landlord for the first time can be daunting, and it certainly isn’t as easy as people make out.
From there, you will need to decide how much rent you are going to charge. This will depend on the size of your property and the tenant you are looking to attract. Do your research and investigate similar properties if you decide to handle this alone.