If you have recently considered renting out property, you are probably aware that there is a lot of things on the table to consider. From understanding the legal business, to physically maintaining a property, there is a lot to take on board if you are new to the craft. Here’s our handy guide which will hopefully clear up some of the confusion you may be feeling.
The property business: a brief overview
As of now, the property market is an interesting position – there seems to be a lack of homes, and buyers are snatching up deals quicker than ever. This is due to a supply crunch – so now is arguably the best time to become a landlord if you have been considering it for a while. The market is currently offering serious potential in terms of job opportunities and financial prosperity, with the real estate industry generating a turnover of 68.1 billion British pounds in 2020.
First things first, you need to identify your target market. For example, you may consider entering the student housing market as those studying at university away from home are highly likely to look towards rented accommodation throughout their studies. Indeed, students come year in year out so the demand for private rented accommodation will always be there. Alternatively, if you have a holiday home, you may look towards renting it out to those eager to getaway. If you don’t happen to have the privilege of second home laying around, it could be a wise investment to purchase a static caravan which people can rent out for varied periods of time.
What should you as a landlord consider, and what are your responsibilities?
Every landlord has a legal obligation to keep property free from health hazards, ensure gas and electricity is installed correctly and running safely, protect tenant’s deposits, provide an Energy Performance Certificate, and inform tenants of their rights and responsibilities. You will also by law need to ensure your property meets fire safety standards, which includes fitting and testing carbon monoxide and smoke alarms, as well as having fire safety regulations in place if you are dealing with flats. Finally, you must also ensure that you have the correct insurance to protect your property in the event of an accident. You can check out more information for owners & landlords online.
Presentation is key: Many people view properties online before viewing in person. This is why your advertising photographs need to be of good quality so you can initially attract people to your property. Extra furnishings such as cushions, photographs, stylish lighting can make your property seem significantly more homely, and thus more attractive to students.
Considering your tenants: Part of being a great landlord is always catering towards your tenants. First, it’s important to understand if they have any medical or legal needs. For example, if you rent out to a person with a disability, you are legally required to adjust it to your tenants needs. Not only is it a legal requirement, but it is the human thing to do if you want to establish a good relationship with your tenants.
If your tenants are into a particular lifestyle, such as clubbing and partying, you may promise them room with a cool and social vibe, which will encourage them to sign for the property.
Energy efficient: At the end of the day, remember that this house is your baby and you will want to run it in the most efficient and sustainable way possible. For example, look to incorporate small changes such as energy efficient lightbulbs, which will help to cut down on unnecessary costs.
If you believe you have the right mindset to begin renting out accommodation, what’s stopping you? Be sure to always remain thoughtful and considerate and pay attention to the fine print – good luck!