5 Tips For New Landlords

Letting property can be a very profitable venture, however it’s not without its drawbacks.

If you’re completely new to letting property then there are certain things you need to be aware of in order to make it a worthwhile way to make a living.

With this in mind, below are 5 key tips for new landlords.

 

1. Make sure you have the time

time

This is extremely important. Many new landlords underestimate the amount of time that’s required to let a property. Even if you just have one property that you’re letting, you might find that you’re unable to do it while also working another full time job. You should think very carefully before investing in more property unless you’re certain that you can dedicate yourself to it fully and make it a success.

2. Get the right cover

When you own property that you’re leasing to tenants, it’s absolutely vital that you have the right cover in place. Landlord insurance is a must since it will cover you for all the risks associated with letting property, including building insurance, liability claims, rent guarantee and contents cover. You can tailor a landlord insurance policy to meet your exact needs.

3. Try to keep your properties occupied at all times

It can be tempting to set your rent prices high and wait until the perfect tenants come along but there is an inherent risk in this approach. This is because unoccupied property is at much greater risk of being broken into and vanalised as well as attracting squatters. For this reason you should try to keep any property you own occupied whenever possible.

If you do have properties that are unoccupied then you need to get them covered with vacant property insurance. 

4. Be selective with your tenants

One of the best ways to avoid problems as a new landlord is by being as selective as possible with your tenants. It’s never a bad idea to go through an agency, who will do all the necessary checks on any tenants you’re considering. You shouldn’t rely on background checks alone though since they only tell you so much. Always be sure to meet with any potential tenants yourself so you can make a fully informed decision.

5. Make sure you have a proper tenancy agreement in place

tenancy

Being selective with tenants is a great way to avoid problems further down the line but it’s just the first step. Things can go wrong even with good tenants. You also have to make sure that you protect yourself with a proper tenancy agreement.

It’s a very good idea to familiarise yourself with landlord law as much as you can when letting property.