Thinking of letting out a property?
In today’s competitive housing market, becoming a landlord is one way to guarantee a lucrative passive income.
If you’re just starting out on your journey in the rental sector, read on to discover a few of our top tips to steer you in the right direction.
1.Protect your assets
Becoming a landlord naturally multiplies your assets. From your décor and interior furnishings to the fixtures, fittings, and the property itself, these assets will need to be protected from damage and unforeseen circumstances.
Obtaining comprehensive landlord insurance could be an option to help you to start off on the right foot. While you can never predict when things might go wrong, being insured may bring you peace of mind in the face of setbacks.
2. …and your tenants
You’ll need to keep your tenants safe too. Even if protecting your assets is your main priority, it’s your legal responsibility to ensure that your property meets requirements and safety expectations from your local authority.
Some of the most fundamental things to consider include fitting the appropriate fire safety measures in your property, arranging PAT testing for any appliances you’ve supplied, and ensuring that all gas equipment is installed and maintained by a Gas Safe engineer.
3. Advertise your property
As a first-time landlord, the key to becoming successful is to make sure that you correctly advertise your property. You’ll need to get enough exposure to secure suitable and reliable tenants.
We’d recommend registering with multiple property sites and estate agents to increase the visibility of your letting. It’s up to you whether you advertise your contact details or not, but it might help you to find the right tenant faster.
4. Keep the books balanced
It’s imperative to keep track of your income and spending. As a private landlord, you’ll need to have an awareness of your cash flow along with any other costs incurred in running your business.
From late-night maintenance call-outs to routine installations, don’t forget to take note of any expenses. Furthermore, keeping tabs of the rent paid is essential. We’d recommend investing in services from an accountant to help you manage your tax responsibilities.
5. Expand your business
At least 39% of landlords own between two and four properties, so what’s holding you back from further investment? Once you’re feeling more settled in your new role and responsibilities, letting out multiple properties is one of the best ways to boost your income more than ever before.
If you have contacts in your local area, try to find out the best properties for investment opportunities coming onto the market.
You’ll stand a better chance of buying successfully if you’re among the first to know, so make sure you do some networking.