How to be a Landlord
There are many topics to consider before being a landlord. Consider these points;-
Are you intending to be a "Buy-to-Let" investor or are you an "Accidental Landlord"?
You may have recently inherited a property or you are finding it hard getting someone to buy your house. You could even be looking to invest your hard earned cash and widen your financial portfolio by joining the buy-to-let market.
Whatever the reason, due to the current housing market, the number of accidental landlords is on the increase and many are investing in buy-to-let properties.
The legislation on the private letting industry is complex and although many new landlords are successful and continue to expand portfolios, many find themselves in difficult and costly situations.
This guide is designed to ensure that you ask yourself the right questions before you are blind-sided by unconsidered costs and potentially contentious clients/tenants.
What type of property are you going to buy?
Broadly speaking there are four market groups:
- Professionals and higher end market
- Working tenants
- Local housing allowance (LHA) tenants
The type of property you own and its location may determine the market you aim for. Different markets will command different rent levels and will require different standards of letting. There are advantages and disadvantages with all types and below are some issues you may wish to consider:
- All renters will expect a high level of customer care from landlords with expectations generally rising in line with the amount of rent paid.
- Professionals will insist on higher standards and possibly en-suite facilities;
- - Young professionals tend to be more mobile and may lead to higher voids and increased re-letting expenses.
- Housing benefit renters (LHA tenants); whilst commanding a lower rent are likely to be more stable renters.
- Renting to students sees higher occupancy rates which can maximise income. Although, student lets may not extend for a full year
Click next to continue to read the RLA's guide on 'How to be a Landlord'. The following pages will include information on finances, using agents and more common questions on how to be a landlord.