10 Essential Steps All Landlords Need To Take

Posted on Nov 10 2014 - 11:18pm by Editorial Staff

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Becoming a landlord is no easy task. You can’t just find somebody and move them into your property and expect the cash to come flowing in. There are some essential steps you need to take first. If these steps sound like too much work for you, you do have the option of finding a company to do all of the work for you. Take a look and decide if you can handle it:

Informing the Mortgage Provider of a Change of Plan

If you’re planning on renting out a property that you already own, you need to inform your mortgage provider of a change of plan. If you don’t, you could get into big trouble. It shouldn’t be too difficult, so set up a meeting.

Finding a Property Suited to the Ideal Renter

If you don’t already have a property you wish to rent out, you need to find one suited to the ideal renter. Who would you like to deal with? Singletons? Families? Think about this carefully. A small semi detached cottage in Shenfield may attract retired grandparents, for example.

Checking the Property Over to Ensure It’s Safe

Whatever type of property you buy, you need to check it over to ensure that it’s safe for your tenants to live in. You’ll need certificates to back this up too. You don’t want to put your tenants at risk by using appliances that aren’t safe.

Getting Adequate Insurance Cover to Protect the Property

To protect yourself and your business startup, you need adequate insurance cover. Not the cheapest deal! You’ll need building’s insurance, which will protect the bricks and mortar of your building. You’ll also need content’s, to protect any carpets and other bits of furniture you’ve left in the building. Your tenant will need content’s too, but that doesn’t mean you don’t. Many new landlords make this mistake!

Vetting Tenants to Find a Trustworthy Person

Forget what you think you know about your potential tenants and go for cold, hard facts. Are they trustworthy? Do background checks to find out.

Drawing Up a Reasonable Tenancy Agreement Covering Both You and The Tenant

You and your tenant need to be protected and covered in your tenancy agreement. Outline what they should expect of you and what you expect of them.

Getting a Deposit and Finding a Suitable Government Scheme

All landlords take a deposit from the tenant at the start of the tenancy, but it isn’t up to you to keep it in your bank. You need to put it in a suitable government scheme, otherwise you could get fined 3 times the amount of the deposit.

Checking on the Property Every Few Years

Even if you don’t get calls from your tenants, it’s up to you to check on your property every few years to make sure everything is still suitable and safe.

Ensuring Repairs and Maintenance are Performed in a Timely Manner

You can’t leave repairs and maintenance for too long, so make sure you’re prepared for emergencies.

Saving Up a Cash Cushion for Times When a Property is Not Occupied

Your property won’t always have somebody in it. Make sure you can afford payments at this time!

If you’ve completed the above 10 steps, you can rest soundly knowing that you’ve got your business off to a great start!

Photo Credit: one2c900d/Flickr

About the Author
Editorial Staff

Editorial Staff at I2Mag is a team of subject experts led by Karan Chopra.