A Guide to Becoming a LandlordWritten By PropertyLoop February 22, 2021
Being a landlord means you can look forward to regular rental payments and impressive capital appreciation over time. You’ll also have the satisfaction of knowing you’re providing a nice home to your tenants.
If you’re a new landlord then why not take the time to quickly read through our Property Loop A to Z Guide to becoming a new landlord. You’re bound to pick up something useful in it:
- Assured Shorthold Tenancy
- Break Clause
- Credit Checks
- Energy Performance Certificate (EPC)
- Fire Safety
- Gas Safety
- House in Multiple Occupation
- Joint Contract
- Kettle and Other Appliances
- Landlord Insurance
- Property Manager
- Stamp duty
- Tenancy Deposit Scheme
- Furnished or Unfurnished?
- Zero Deposit
Assured Shorthold Tenancy
An assured shorthold tenancy (AST) is the most common type of tenancy agreement between a landlord and tenant.
This allows either party to terminate the AST half way through the rental agreement, ie; before the fixed term ends.
This is necessary to ensure your tenant will be able to afford the rent. It’s usually carried out by a Tenant Reference Agency.
A security deposit is what your tenant pays when they move in to your property (it’s equivalent to five weeks rent). They receive it back when they move out, minus any money deducted for repairs. A holding deposit is to secure a property and is equivalent to one week’s rent.
Energy Performance Certificate (EPC)
This must be carried out every decade or whenever a new tenant is renting the property. Only flats with an EPC reading of ‘E’ and above can be rented out.
A fire alarm should be installed on every floor of your property. Carbon monoxide testers must be put in rooms where there is a working fire.
A gas safety check must be carried out annually and a copy of the certificate handed to the tenant.
House in Multiple Occupation
Landlords require a licence from their local authority if their property has three or more people renting who are not related.
All furniture and fittings in the property are listed on the inventory, together with their condition. This is checked at the start and end of every tenancy.
When the rental agreement is in two names, with each taking joint responsibility for the property.
Kettle and Other Appliances
Properties can be furnished or unfurnished. Young professionals tend to prefer furnished we’ve found here at Property Loop. Families often opt for unfurnished, having amassed enough possessions of their own over the years.
This is often a necessity for a buy-to-let mortgage and covers the external building, in addition to fixtures and fittings.
Landlords typically either handle maintenance and repairs themselves, or pay for a property manager to do so.
A tenant needs to give a landlord one month’s notice of their intention to leave (provided the fixed tenancy period has passed). Landlords are usually required to provide two months’ notice that they wish to repossess their property.
The Property Ombudsman and The Property Redress Scheme deal with complaints against letting agents and/or managing agents.
Landlords often pay for a property manager to handle repairs and maintenance of their property and deal with tenant requests.
This is the income you receive from your tenant on a monthly basis.
A 3% additional charge is paid on top of stamp duty for each buy to let property you acquire. There is currently a stamp duty holiday for properties worth under £500,000. It ends on March 31, 2021.
Tenancy Deposit Scheme
A tenant’s security deposit must be paid in a government-accredited scheme within 30 days of receipt. Your tenant must be informed of where and when within four weeks.
Furnished or Unfurnished?
It’s fine to rent out an unfurnished property, but you won’t be able to charge as much rent for it as you would if it was furnished.
This is when a buy to let property doesn’t have a tenant, meaning the landlord has to cover the mortgage from their own savings.
This is the amount of money in percentage form that you can expect to make from the rental income compared to how much you spend on the property.
There are a few zero deposit schemes where tenants only have to pay one week’s rent to the landlord.
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Built by experienced property investors and landlords, PropertyLoop connects renters with the owners directly. Your property is featured on all major search and comparison portals as well as advertised by PropertyLoop everywhere else on the Internet. You don’t have to worry about finding the good renters, that’s the job for the platform. Receive offers straight to your mailbox and select the renters that are right for your property. Need access to busy London property market? No problem at all! PropertyLoop is the London market specialist with years of experience and unique knowledge. Whatever your needs are, you can always speak to friendly support staff. Renting property is made as simple as one, two, three.