So, You Want to Be a Landlord
Being a landlord with a buy to let and even a House of Multiple Occupation (HMO) can be lucrative, provided you have done all the necessary due diligence.
It can also be hard work though (especially in the case of running an HMO) and a quick learning curve if you have done it before. For instance, it’s not just a case of making your property look nice then renting it to the first would-be tenants who seem ‘nice.’ There is a lot more to think about than that, such as:
Do You Have A Buy-To-Let Mortgage?
If the property you plan to let out is leasehold then you’ll have to check with the freeholder that it’s ok to do so. Likewise, your mortgage provider will also have to be informed since it changes the terms of your mortgage agreement. Instead, you’ll be asked to take out a specialist Buy to Let Mortgage (and which is slightly more expensive than a residential version).
Another authority body you will need to inform is the local council. This means you’ll be put on their landlord register and your property checked to make sure it meets all their conditions for private renting.
Does the Property Comply With Safety Conditions?
Under new rules your property must be ‘green’ to the extend it must have an Energy Performance rating of E or above. You must prove this by getting an Energy Performance Certificate check, and then give a copy to your tenants.
It must also be checked by a Gas Safe engineer to ensure there are no leaks and that it is safe to live there. A copy of this certificate must also be given to the tenants prior to their moving in. Electrical safety checks aren’t mandator but it is a good idea to get one, and to ensure any portable appliances are PAT tested.
Smoke alarms on each landing and a carbon monoxide detector in rooms where there is a fire, are also mandatory. Fire restrictions are even tougher in an HMO and where there must also be a fire extinguisher, safety blankets and regular fire drills with all residents involved.
Is Renting Financially Viable?
As a landlord you will have to pay tax on rental income if, together with any salary you receive, your income is above a particular sum. Then there are fees for marketing the property, management costs and repairs. Worse still, you may even encounter void periods where the property is empty for several months at a time, leaving you to fork out for two mortgages at the same time.
What if You Get Bad Tenants?
No landlord wants to think about the possibility of having problem tenants. But they do exist. It can be very expensive to have to go down the legal route of evicting them – especially if you don’t get it right first time. And what about the stress and sleepless nights you will have to go through, wondering about the state of your property? Being a landlord certainly isn’t all plain sailing…
Looking for an online property agent you can trust? Then get in touch with the team here at propertyloop.co.uk.
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It’s a free platform that only charges a small fee once you get your rent money in. 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 good renters since 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 the 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 our friendly support staff. Renting property is made as simple as one, two, three…
As a landlord you will gain passive monthly rental income from your buy to let and capital appreciation as the years flit past. And it’s exactly this capital appreciation ...
February 12, 2021
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