Advice for new landlords

Becoming a landlord is an exciting prospect. The income revenue is obviously one of the main reasons for becoming a landlord, but it can also offer long-term security for the future, as well as certain tax deductions.

If you're thinking of becoming a landlord for the first time or have acquired a property that you want to let out, it’s wise to do plenty of research and ask for advice before you set out.

Here we have listed some key pieces of advice that we give to any new landlords looking to offer rent in the UK.

Get the location right

When it comes to finding a property that will be easy to rent out year after year, the location of it is key.

If you are aiming towards a family audience, then do some research about the locality to the popular schools and parks. Or, if you are wanting a student audience, then the property should be easily commutable to the university campus and a selection of bars and restaurants to suit their social needs.

Check out websites such as Rightmove and local newspapers to get an indication of the value of the rental market in a few different locations. It’s surprising how much rental value can change in only a matter of adjoining streets!

Prepare the property

Getting the interior and furnishings right in your chosen property can really help improve your chances of securing a good tenant – especially in a competitive market. Giving your house a bit of love and attention doesn’t have to be costly, but it can save you money in the longer-term - reducing the time your property is empty.

As a general rule, a neutral colour-scheme is considered the best way to go for a rental property as it will appeal to more people. That way the walls and floors will easily go with any furniture and furnishings your tenant wants to bring in. Remember, when choosing paint to use a wipeable and durable satin finish so that it will be easy to clean walls in between tenancies and reduce the amount of work needed to get the property ready for the next tenant.

Supplying white goods in your rental may also be an added incentive to achieve a quick rental. The minimum would be a cooker, a washing machine and fridge/freezer, although many people now prefer a tumble dryer and a dishwasher to be part of the package too.

Source the right insurance

Although there is no legal obligation to take out a dedicated landlord’s insurance policy, doing so will protect yourself, your property, and your tenants from anything untoward occurring. Standard home insurance policies aren’t designed to cover any type of rental activity and your mortgage lender may require you to take out a specialist landlord policy as part of their agreement.

You can choose from a range of insurance types for landlords, including property owners’ liability insurance and contents insurance, along with buy-to-let buildings cover.

Our partners over at Louis Daniel are experts in this field and would be happy to book you a free consultation to discuss your requirements as a landlord.

Find the right tenants

One of the most challenging parts of being a landlord is choosing the right tenant. You want to find a tenant who will take care of your property and also be able to cover the relevant costs financially.

Using a letting agent to find your tenant is usually the best option. The agent will take most of the stress out of the letting process and you can also decide whether you want them to manage the property too. This is often useful if you have a portfolio of properties to let.

If you are looking for student tenants, then it’s best to contact the universities’ student union who will often provide students with a list of suitable accommodation. Otherwise, it’s best to use a dedicated student lettings company who specialise in renting out properties and dealing with the student market in that area.

In the current rental market and depending on the property you own, you may find that you have a selection of multiple tenants to choose from. In this instance, look at each candidate’s specifics to see who might be the best fit. Look at things like whether they own pets, or whether they can provide a positive reference from their last landlord.

Agree on the terms of the tenancy

Before the tenant moves in, you will need to agree with the tenant on the terms of the tenancy. This will be in the form of a written tenancy agreement, which sets out the terms and conditions of the tenancy in detail.

Tenancies can be for a fixed term, which is usually 6 or 12 months, with a break clause in between. This term can then be extended onto what is called a 'rolling' tenancy once both the landlord and the tenant have completed a successful first term together.

With a 'rolling' tenancy, the contract essentially renews on a month by month basis. It’s worth remembering that you will still need to serve the tenant notice if you wish to take back possession of the property.

Think about other points that you wish to include in the agreement, such as whether the rent includes utility bills, or not, and whether pets are allowed in the property.

The agreement may also contain details of your obligations to repair the property in case of any damage or wear and tear. Your obligations to repair will depend on the type of tenancy you are offering.

 

Here at Stoneacre Properties, we are trusted by over 1000 landlords in the Leeds area. We have over 20 years of experience and can offer a range of services for your portfolio of properties.

Get in touch today to talk to our dedicated team. Please call 0113 237 0999 or click here to contact us.

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