5 Things You Should Do When You Become A Landlord
Becoming a landlord isn’t just as simple as buying a property and renting it out - there is a lot to consider and do before you earn any money.
If you have been considering starting a new business in real estate something that you might not have thought about is becoming a landlord. Although landlords have gained a stigma of being disliked, you could make it very successful and profitable if you do it properly.
However, becoming a landlord isn’t just as simple as buying a property and renting it out. There is a lot to consider and do before you earn any money.
Clean And Furnish House
After you have bought a property, it won’t be ready for renting out straight away. Often, there will be a lot which you need to do to improve the overall look of the house so that when you have potential tenants coming to look, you can really sell it to them.
This list of tasks includes cleaning the entire house. You could do this yourself, or you enlist the help of professional cleaners depending on the scale of the house. A dirty house will put any potential tenants off. You will also have to ensure that the house is furnished with the basics of a fridge, washing machine, and cooker. Additionally, if you choose to do so, you could fit it out with table and chairs, a bed, curtains or blinds and seating for the living area if you want to sell it as a furnished house. If you advertise it as unfurnished, however, the above kitchen appliances are all that you will need.
You probably already have home insurance on your own home, so there’s no reason to not get any landlord insurance on this new property that you have bought. By having landlord insurance on your leased property, you are covered for a number of things that could potentially go wrong when tenants are living there. It includes fires and floods, and damage to the property. It also covers you for loss of rent, meaning if the tenants haven’t paid, you won’t lose any money.
Health And Safety
As a landlord, it is your duty to lease out a house that is safe to live in. If there is anything wrong with the furnishings you have provided, or with the house in general, it is your responsibility to repair or replace.
What you must keep safe as a landlord includes:
• Gas: The gas appliances you supply must be safely installed, maintained and checked by a registered engineer. When the tenants move in, you need to give them a copy of the safety check records.
• Electricity: Check the electrical system, including all sockets, light fittings and the appliances that use the supply are safe to use.
• Fire: You must provide a smoke alarm and a carbon monoxide alarm, as well as ensure that the furnishing’s you provide are fire safe.
A tenancy agreement is a contract between you and the tenant recording everything you have agreed about the tenancy, including the cost of rent, the deposit given and evicting. It needs to be filled and signed before they move in because, without this vital paperwork, it is just your word against theirs. Ensure that you have all the correct information you need about the tenant, including their full name, contact details and if they are under the age of 18.
Know Your Rights As A Landlord
As a landlord, like any business owner, you have rights that your tenants must respect which will ensure that you are not taken advantage of by those renting out your property. It includes:
• Payment of rent
• Right to evict
• Tenancy agreement
• Rights of entry
• Property maintenance
Having all of these above steps in place will ensure that your new business of renting out properties is done legally, safely and most importantly successfully.