Being a landlord, managing a property that you want to let can turn out to be a time consuming and often complicated job, especially if this is your very first time as one. For most new landlords, a major problem they face is all the legal issues that tag along with a letting agreement. Another crucial aspect is often the supervising stage of the entire rental unit as well as preventing all the problems that may occur in the days to come. Through the help and guidance of estate agents in East Dulwich, knowing the basic duties and having enough knowledge towards your tenants is usually the very first steps to keeping away all legal issues.
Right from screening, finding to creating a concise rental agreement as well as collecting the rent, here are the basic must know tips for landlords like you (new in the property market!).
Avoid Discriminating Prospective Tenants
Some landlords end up discriminating landlords and rejecting prospective tenants for countless reasons that turn out to be discriminatory.
According to property market experts like Fish Need Water, “It is not right to deny prospective tenants only because of their national origin, race, sex, financial status, disability or even colour.”
Being a landlord in London, you should base your decision on some important factors like:
- Employment history
- Credit history
When you evaluate the tenants that visit you, it is advisable that you keep a proper record of exactly why you are rejecting tenants during the process of screening and also use that to search for the right applicants. A suitable approach is to search for tenants with the help of estate agents. You can take your time to consult them and they would be more than happy to help you in finding the right tenants through property marketing. You should always respect your tenants and be sure that you take enough time to understand them all and their expectations.
Fix a Good Rental Price
If you want to get the best rental price for your property, it is recommendable that you thoroughly research the property market. You should survey the rental prices of similar properties like yours in the area. This way, you should be sure that you are able to set appropriate rental prices to attract potential tenants.
At the time of fixing the rent price, you should keep in mind that this could affect all your monthly finances. After all, when you consider renting a property, all the payments you receive are an integral part of your overall income. However, you need to be careful that you do not overprice your property since you will most likely get one of the most costly scenarios, a landlord voice period.
A tip here for you is to compare your rental income to your rental expense. You have to list down all the estimated as well as the fixed expenses to make sure you have the right price for you. As a landlord you should also consider the things you can skip when you budget. The fixed expenses often include insurance fees, mortgage payment, and property taxes. Most of the variable expenses may be an improvement of the property, and repairs. When you are able to compare all your income to the possible expenses, this will be a lot easier for you to see how the price of the rent can affect all your monthly revenue.
Treat Your To-Let Property as a Business
Sure, your primary job may not be managing your property, but you should still treat this like a business. You need to ensure that you keep a professional attitude. To establish a rental business that is reliable, you have to comply with all the local schemes and legislation relating to the property. Ensure that you follow all the necessary laws to establish a positive relationship with your tenants as well as avoid future legal problems.
You should also protect yourself from accident claims or liability. A good way to stay away from problems is to have landlord insurance. Note that any unfortunate situation, even one like a pipe burst the landlord insurance can help you to bear all the costs and the loss. It means that if any tenant decides to sue you, you will not need to pay thousands of extra pounds.
However, you also keep in mind that you conduct a reliable business; you need to prevent any risks before they happen. In order to avoid problems, it is best that you keep your property in the right condition. Make sure that you repair the broken fixtures or damaged areas as soon as possible. You should also keep all your finances in check by keeping three months of rent in reserve to deal with any form of big maintenance and give yourself enough breathing space.
At such times, the rental insurance can be your saviour. However, before you rent your property, you should keep these tips in mind to ensure a smooth and long-term relationship with your tenants. Of course, you can always consult estate agents in your area for the best results.