5 Things Every New Landlord Should Be Aware Of
Becoming a landlord seems like a financially rewarding, straightforward and enjoyable business venture, especially if you have a keen interest in the properties and the housing market.
As simple as it may sound, there are certain elements of being a landlord that come with their complications. In many cases, new landlords may not always be aware of their duties of care towards their tenants and other parts of the job that are not often spoken about. With this in mind, here are a handful of things you should be aware of if you’re looking to become a landlord.
1. Gas and Electric Safety Tests Are Required
As a landlord it is your responsibility to make sure your properties are gas and electricity safe. Recently, EICR Testing every five years became mandatory by law in certain areas, so this is something you need to stay on top of. This ensures that all fixed electrical installations and circuitry are safe. Similarly, it is also a legal requirement to carry out gas safety checks annually and keep a record of the check for the tenants.
2. You Are Allowed To Increase Rent
It is completely up to you to set the level of rent that works for you, your tenant and is fair in comparison to the market. Every so often you would expect costs to rise, so compare other similar properties and see where your house fits into this.
3. Your Tenants Won’t Always Care as Much as You Do
Although you may take your time to carefully consider the type of tenants you want to have in your home, they won’t always care about your property as much as you do. You have a financial and emotional stake in the house so you are much more likely to take care of it. Keep this in mind when it comes to maintenance and cleaning; you may need to do it more regularly in a rented property.
4. Be Prepared for Unexpected Repairs
Having a savings pot ready and available for unexpected incidents involving your rental property is always a good idea. Boilers, washing machines, fridge freezers and other electric appliances can break without notice, and you would be liable to replace them as soon as possible. Make sure you take out insurance on any new appliances so that you’re always covered.
- Landlord’s Insurance is a Good Idea
Although it is not essential to take out landlord’s insurance, it may be something you wish to consider. When you take out landlord insurance, you will be covered if any accidents involving your tenants occur in your property. This cover is much more comprehensive than your home and building insurance.
So, if you have a property that would be ideal for renting out to tenants, now would be the perfect time to look into becoming a landlord. As long as you are willing to do your research, maintain the relevant safety checks and take out insurance to protect you and your tenants, there is nothing standing in your way!
