What to know before becoming a landlord

Some people find themselves in a position to become a landlord, others make the conscious decision to purchase a buy-to-let and take the leap. However, you decide to do it, becoming a landlord can be a whirlwind of excitement and nerves. It’s something that also really important to get right. You’re handing over control of one of the most expensive things you own, and you are taking responsibility for providing someone with a home. 

Being a landlord can be both rewarding and profitable, but there’s also plenty that can go wrong. There’s a lot to be aware of – here are a few of the basics… 

Take rent seriously 

It might be tempting to give in to tenants reasons and explanations as to why they can’t pay their rent this month, or why it’s going to be late – but without the rent payments that cover your mortgage costs, you won’t get anywhere. The rent is your revenue. It’s important to make it clear from the get-go that paying the rent is the least your tenant can do and that missing payments will be taken very seriously.  

It might not come naturally to you, but try not to feel awkward about putting your foot down with late rent. In the same vein, remain open and personable so that tenants can be honest with you if they are having issues. Landlords may be able to get a three month rent holiday during this pandemic if they can’t pay their mortgage due to tenants being out of work. If you’ve not received rent for a couple of months, taking action may be necessary and bringing in a company who who have a good track record when it comes to successfully tracing debtors may be the solution. 

Screen your tenants thoroughly 

You’ll likely find that a huge range of people will be interested in your rental property once you put it on the market. The screening process ensures that you find the right kind of tenant to trust with your property. When you’re right at the start of your landlord journey, it’s so important to find yourself good tenant’s – don’t take any risks when you don’t have the experience behind you to fall back on.  

At least for the first few years, it’s wise to avoid tenants with bad credit scores and criminal records. Of course, these factors don’t necessarily mean that someone will be a bad tenant, but it’s better to play it safe whilst you’re starting out. It’s also really important to be aware of the things that you cannot reject someone over. You cannot reject someone due to their marital status, being pregnant, their age, or due to any of the ‘protected characteristics’ such as nationality, gender identity, sexual orientation, disability, or religion. 

Get the tenancy agreement right 

The tenancy agreement is the holy grail of your tenancy. It’s the thing that you can fall back on and turn to if you need to resolve any issues. It serves to detail everything that was agreed upon at the start of the tenancy. It’s important to take your time and get it right, ensuring that it includes everything that you want including such as no smoking clauses and rent payment dates.  

If you’ve got no idea where to start when creating your tenancy agreement, there’s plenty of online templates that you can use to get the ball rolling. Just make sure that you double-check that it is a UK based template. 

Get covered with landlord insurance 

Although you aren’t legally required to take out landlord insurance, your mortgage lender will probably insist you have cover before they give you the go-ahead to take tenants on. You might have a home insurance policy, but this won’t be enough. Take a look into the property owner’s liability insurance, contents insurance, and buy-to-let buildings cover.  

You can compare landlord insurance to ensure that you are getting the best policy available to you at the best price. As a first time landlord, you’ll need good cover more than ever. 

Build good tenant relationships 

It’s no secret that landlords have a pretty bad reputation. Don’t give tenants a reason to believe the stereotype! If you have happy, comfortable tenants then you’ll be in for an unproblematic ride as a landlord. Keep a good line of communication and if your tenant contacts you with an issue, such as repairs or maintenance that needs carrying out, take this seriously and resolve them as efficiently as you can. You have a duty of care to your tenants. 

Could you add a few small touches to your buy-to-let in order to get off on the right foot, such as a welcome hamper or a small gift? Christmas and/or birthday cards are also a nice touch. It shows that you respect your tenant, and respect them looking after your property. That being said, don’t be overbearing and contact tenants too much. There’s a fine line and it’s important to give them space in their home.  

Happy tenants and a professional approach will mean that you will hopefully be in for long and unproblematic tenancies. If you ever need to increase your rent over time, tenants that are being treated well will probably be happy to accommodate. At the end of the day, it’s all about providing a great service and having respect for the person – or people – that you’re trusting to look after your property. 

XOXO

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