Tenants & lettings
Once you’ve chosen your property, you need to make it work for you. This area is covered in far greater depth within the Information Centre and is a major element of our free educational 2-hour Investment Property Workshops. Why not book your place on one now.
Here’s a brief outline of some of the aspects you’ll need to consider:
Agents
If you don’t have the time to manage your property, an agent can be very useful. You can use them to just find tenants, check them in and out, or to supply a full management service. Fees can vary widely, so it’s worth checking on fees and services in your property’s area.
Tenants
Finding the right tenant is vital to your income. As a landlord, you should make sure that your property and its fittings will attract the people you want. You also need to be efficient in taking up references and making credit checks – an agent can help.
Contracts and deposits
A sound contract is valuable, and it’s worth having one drawn up by a specialist. There are strict guidelines covering the handling of deposits – you need to know when you have the right to retain it, and how to hold it while your property is occupied.
Guaranteed rentals
Some letting agents now offer a guaranteed rental scheme where they’ll pay you rent even if the property is empty (some overseas developments also have a guaranteed rental). While this could cover your costs, you might be able to secure a higher standard rental.
Voids
Voids – when your property is empty – will see your profit plummet. You’ll need to do everything possible to make your property appeal to long-term tenants, which can mean ongoing investment.
Landlords and the law
Landlords have a number of obligations, including the duty to have appropriate insurance and that furnishings meet safety regulations. However, the law can also work for you, so it’s important to know all of the legal aspects that apply to you.
Gas and electricity safety
You must have a qualified technician test all gas and electrical appliances regularly to make sure they comply with current safety standards.
Repairs and maintenance
It’s up to you to pay for any repairs or maintenance to the property. If you want to keep your tenants, it’s a good idea to do this promptly. You might want to consider paying a retainer to a local handyman to ensure swift service!