If becoming a landlord is something you have been considering, now is the time to learn all there is to know about it. Keep reading to find out what steps you need to take to become a landlord.
How to Become a Landlord
Since the beginning of the year, demand for rentals has significantly increased. And with demand far outweighing supply, there perhaps has never been a better time to become a landlord.
In this guide, we will show you what steps you will need to take and how you can start renting out your property.
Landlord Eligibility
The first step to becoming a landlord is checking your eligibility. Not everyone can be a landlord and not all properties can be rented out. Therefore, it’s best to start by checking applicable legal requirements for your particular circumstances.
For example, if your property is mortgaged, your mortgage lender will have to issue an approval before you are able to rent out the home. Your mortgage policy must also cover buy-to-let.
For leasehold properties, the terms of the lease must allow you to sub-let.
Landlord Legal Responsibilities
Every landlord must ensure they are up to date and observe their legal requirements relating to their responsibilities and duty of care towards the tenant. This is paramount since not observing legal requirements may prove costly.
Landlords must pay particular attention to the following legislation:
- Minimum Energy Efficiency Standards (MEES)
- Tenancy Deposit Schemes (TDP)
- Tenant Fees Act
- Section 21 Evictions
- Electrical Safety Inspections
As a landlord, you will have to regularly check for any amendments to this and other legislation and check the rules that apply to your region.
Since legislation is constantly changing and being amended, this is one of the main hurdles landlords have to overcome. It’s not always easy to stay up to date and understand all the rules that apply to you and your property.
This is why many landlords choose to assign a letting agent to manage their property. An experienced letting agent will keep you up to speed on the ever-changing requirements for landlords and handle all the legal aspects of letting the property for you. On top of this, they will also handle all the day-to-day management and upkeep of the property so you don’t have to stress about anything.
To contact one of our experienced letting agents, call 0207 055 0441 or send an email at info@realestateagentslondon.co.uk.
Observing Tenant Rights
It is mandatory for all landlords to observe tenant rights and to have these rights listed in the lease agreement. To become a landlord, you must be aware of these rights and make sure the property meets the legal requirements.
The main tenant rights you must observe include:
- The property must be safe and in good state
- The property must have a valid Energy Performance Certificate (EPC)
- The tenant must know who their landlord is
- You must have a written agreement in place for any fixed-term tenancy of more than three years
- The tenant must be able to live in the property without being disturbed
- The tenant must be protected against unlawful eviction
- You must not charge tenants excessive fees
- You must return the tenant’s deposit once their tenancy ends
Property Condition
If you want to succeed as a landlord, it is important to have a property that is in good condition. In many cases, landlords have properties that could use repairs, renovations, or improvements before being rented out.
If your property needs work, it’s important to consider the costs of such work and how you will be able to finance it before you consider becoming a landlord.
Furnishings are optional for rental properties. You can rent out a property that is fully furnished, partially furnished, or unfurnished.
Every option has its advantages and downsides. So it’s up to you to consider the pros and cons and make a decision that suits your needs.
Property Management
Some landlords choose to manage their own rental properties and handle all of the day-to-day operations like promoting the property, communicating with tenants, and keeping the property in good condition. However, many landlords simply do not have the time or do not want the headaches and choose a letting agent for the management of their properties.
The main advantages of choosing an experienced letting agent to manage your property are:
- A letting agent can help you determine how much rent you should charge
- Letting agents are more than familiar with the legal requirements applicable to rental properties
- An experienced letting agent has access to a wide range of potential tenants as well as professional marketing tools and techniques
- Letting agents are proficient in communicating with potential and existing tenants
- A letting agent will easily source professionals for repairs and upkeep to ensure the property is always in top condition
If you want to know how much rent you could get for your property and learn more about the advantages of choosing an experienced letting agent for the management of the property, contact our Canning Town estate agents today at 0207 055 0441 or info@realestateagentslondon.co.uk.
