Being a landlord is the perfect way to put yourself on the road to financial freedom and independence. It does require some hard work on your part, but once you are up and running the income you generate is mostly passive, letting you sit back and reap the rewards. These tips should help you get started.
Get Your Property In Good Order
If your property is not ready to rent, then neither are you. Before you can put a property on the rental market it needs to be habitable, clean, and have all its paperwork completed. There are many boxes to tick, but once it is done being a landlord becomes much more passive, and you can sit back and count the profit every month.
An Electrical Installation Condition Report, or EICR, is an important part of the property-letting process. Look here if you are asking yourself ‘what is an EICR report?’. Put simply, it is a certificate that states your property’s electrical system is safe to use. Trade Facilities Services can help you get one quickly by sending one of their experienced and qualified electricians to perform some tests on your electrical circuits. Once you have one of these EICRs in hand, you are one step closer to letting your property.
Registration And Regulation
No matter where in the UK your rental property is located you will need to go through a registration and regulation process with your local authorities. This process varies a little between England, Scotland, Wales, and Northern Ireland. If you are considering working with a property management company, they should be able to help you navigate your local authority’s requirements. It is important to remember that this process protects you as well as your prospective tenants.
In England, not every local council asks landlords to register with them. If your property is in an area that does not require registration you may still want to consider joining an organisation like the National Landlords Association (NLA), or the Residential Landlords Association (RLA). They can offer you a lot of valuable advice and assistance for a small registration fee, and it adds to your professional appearance as a landlord.
Managing Money And Expectations
Before you put your property on the market you need to do some budgeting. You will be making a long term agreement with a tenant of at least six months, so you need to get your price right or you will be losing money for at least half of your first year. If you have a mortgage on your rental property you need to ensure that your rental yield covers this and any other costs while also leaving you with some profit.
Investigate your tax liabilities, set aside a small amount to cover the cost of any future repairs, and cover the cost of a property management company if you decide to use one. With these and your mortgage costs added up you should have a good idea of your minimum rental amount. Once you have completed your budget you should know how much monthly profit you can look forward to.
The hard work of being a landlord is in the setup stages. Once you have prepped your property and got all the necessary paperwork, landlord life becomes easy. Use these tips to get the hard part done quickly.