Would-be DIY landlord? Follow these tips
By Guest Blogger on 7 Sep 2017 in Letting
By Ryan Weston, of Just Landlords
Despite the raft of regulation changes aimed at deterring landlords from purchasing property, the fact remains that buy-to-let is still a solid form of investment.
With demand continuing to outstrip supply in many regions, savvy landlords can certainly enjoy substantial rental yields, should they remain organised and on top of any changes.
Many investors enlist the help of a letting agent to assist with their duties. Letting agents can carry out numerous tasks, from sourcing tenants, checking their eligibility to rent in the UK and showing them around the property.
However, a proposal to ban letting agent fees levied on tenants is looming, leaving many landlords considering whether to go it alone. Of course, this requires a combination of organisation, time management and ultimately knowledge.
Here are our top-tips for DIY landlords to run a successful investment portfolio:
Research is key
An obvious statement but it’s imperative for would-be landlords to conduct thorough research before pressing ahead and purchasing an investment property. This should include assessing not only fixtures, fittings and Energy Performance Certificates, but also the local area and its amenities. Think about your ideal tenants and what they will be looking for from your property and its surroundings.
There are many regulations that buy-to-let landlords must adhere to, to remain on the correct side of the law. Over the last couple of years, there have been more tax-based legislation changes to which landlords must comply. It’s vitally important that landlords not only understand and practice within these regulations, but also ensure they can adapt to them financially.
Take a deposit
Another key component of becoming a buy-to-let landlord is taking a deposit from your tenant(s) – this normally amounts to around a month’s rent. It’s a legal requirement for you to protect this deposit in one of three Government approved redress schemes: the Tenancy Deposit Scheme, MyDeposits or Deposit Protection Scheme.
Appreciate inventory importance
Before your tenants move in, conducting a thorough, photographic inventory with your tenant is crucial. This will highlight any existing damage and allow you to compare during the tenancy. Also, a good inventory will limit the chance of deposit disputes at the end of the agreement. Be sure to collate two copies – one each for the tenant and yourself.
An inventory will also help when conducting periodic inspections, as you’ll be able to track any damage through cross referencing your original document.
Following these key tips, alongside keeping organised and professional, will give you the best chance of having happy tenants and ultimately consistent rental yields.