Top 5 Tips for Being a Landlord
For those who have concerns about the current economic and political climate, HomeLet, leading UK provider of landlord insurance has released an ebook which has some excellent advice, detailing top tips about everything from Brexit to some of the latest UK laws which are affecting those with buy-to-let investments.
1. Don’t Sweat Brexit
Many are concerned about what will happen to the UK property market after Brexit. Ryan Bembridge is a Senior Reporter at Mortgage Introducer, and he says that while property investors are keeping their eyes out for any signs of potential danger after the historical vote for Brexit to leave the EU, it’s not all bad news.
In fact, investors actually have the opportunity to take advantage of lower mortgage rates, since the Bank of England is cutting interest rates to 0.25%. Landlords who have larger portfolios will be looking at their investments long-term, meaning they’re unlikely to be put off by this Brexit.
2. Seek Professional Advice
Private landlords are being clamped down on, and those purchasing new properties had to pay a 3% surcharge on their stamp duty. These landlords are also facing the removal of the wear and tear allowance that landlords have previously been able to claim based on 10% of their rental income.
Tax reliefs that landlords once benefited from are due to be removed from April 2017, meaning that many potential investors and landlords are beginning to worry about these implications. The answer? Speak to a professional financial advisor about your options.
3. Get a Reference
When it comes to some of the many tasks that landlords face, screening and selecting their tenants is potentially the most important. By carefully screening and checking the references of all potential tenants, landlords can prevent 95% of potential problems, and while they will often be anxious to fill an empty property, it’s a much better idea to wait and select a tenant that can be trusted.
4. Tenancy Agreements
It’s crucial that you have a tenancy agreement in place if you want to mitigate any risks when it comes to renting out your property. While this contract can seem overly formal- particularly if you’re planning to rent to people you already know, it can be crucial and will protect you down the line.
A written tenancy agreement will clearly state the responsibilities and rights of both parties, meaning that both you and your tenants will avoid any unnecessary confusion or potentially unclear situations.
5. Regular Inspections
Inspections aren’t particularly fun for anyone involved. Tenants can resent the intrusion, and it also takes time out of the landlord’s day as well. However regularly inspecting your property (and remembering to give your tenants plenty of notice) will help yo u notice any damage, and resolve any problems before they escalate.
There are also many companies who can do this part of the agreement for you, which can be extremely helpful-particularly if you’re overseas.