6 Tips For New Landlords

Becoming a landlord can be a great investment and yield excellent results when done right. However, the thought of becoming a landlord can be daunting for many as there are a lot of factors to consider like cost, laws and much more.  
As mentioned above, being a successful landlord can yield excellent results, so it is essential that you know the basics. As you may be investing a lot of money as well as time, it is important that things go smoothly. With that in mind, take a look at our six essential tips for new landlords.  

Take Your Time  

If you have a property ready, there is no doubt that you will want to start getting some return on investment. However, you should take your time to find the right tenant. You should think about the criteria you would prefer to be met, as well as ensuring that credit checks are done before the tenancy agreement is signed. Taking the time to find the right tenant and being clear on what you would like at this stage can save a lot of stress and problems in the future. 

It is a Business 

Having a rental property is like having your own business, and this why you should try to be as organised as possible. Keep a list of all of the appliances and their serial numbers as well as making a note in a diary with any key dates written down such as gas checks, boiler service, renewal for insurance etc. Additionally, keep a note of the numbers of tradesman especially those who could help you with an emergency.

 
Money is an important factor in any business, so scheduling your incomings and outgoings are worth thinking about as this is often overlooked. Just ensure that when you set up the tenancy agreement the rent from the tenant gets to you before your mortgage payment. 

Insurance

Ensuring you have the correct insurance in place is essential, and many new landlords think that normal home insurance would be sufficient, but it isn’t. Landlords will need to take out landlords’ insurance as well as ensuring that the policy contains a realistic re-build cost, and this should be reviewed each year.

Agree the Tenancy  

Before your tenant moves in, you, as the landlord will need to agree the terms of the tenancy with them, the best way to do this is by having this in a written tenancy document which will set out the terms and conditions of the tenancy.  

The tenancy can be for a fixed term which is usually 6 or 12 months or extends onto a rolling tenancy. A rolling tenancy usually renews on a month by month basis. It is advised that you ensure you have a written tenancy agreement setting out the conditions before they move in.

Create an Inventory 

If you will be letting your property as furnished, it is a good idea to create an inventory of everything already in the property. You can do this by taking photos of all the items which can be given to the tenant which can help avoid disputes. However, if you use a letting agency, they can do this on your behalf.  

Use a Letting Agent  

A letting agent will draw up contracts, take the deposit and conduct the inventory in addition to advertising your property on your behalf. Here at Godfrey Short & Squire, we offer two types of services, fully managed or tenant find, and you can find a list of what is included here. Using a letting agency can take a lot of the stress away and can help you manage the property effectively.

 
It is important that your tenants are comfortable and happy in your property. We are experienced letting agents in Okehampton, so if you have any questions about how we can help you manage your property or find a suitable tenant, then please don’t hesitate to get in touch on 01837 54504.