Starting off in the property investment game for the novice can be like diving into the ocean with almost no clue as to what creatures lurk in the murky depths. It can be a scary move to make with all kinds of technical, legal and social landmines that can take you by surprise. As in anything potentially difficult in life, it's always good to start with the basics, small digestable chunks to get you started. So in that spirit, lets look at a few simple pointers to get you headed in the right direction:
1. Firstly, ask yourself how much rent you want to bring in and take a look at the kind of numbers you’re dealing with in your local market. If you find this part of the initial journey a little daunting, why not give us a call and not only can we help you with valuations but also ensure you’re aiming your property to the right tenants.
2. Know the legal basics and do your research. Familiarise yourselves with things like Right To Rent checks and make sure one of the first things you do is ensure that your tenants deposit is protected.
3. Once your RTR check has been completed your properties need to satisfy the basic requirements like smoke alarms, gas safety checks and installing carbon monoxide testers. Before you think about renting out your property these must be checked off along with an Energy Performance Certificate for each property you own.
4. Make sure both yourself and the tenant know who is responsible for what, whether that be mowing the lawn or fixing blocked cisterns. Consider having the tenant as a named contact on the insurance in case you’re not on hand should an emergency arise. If you’re not great at repairs consider having a maintenance team, even if it’s small to begin with. If you are good with anything maintenance related the DIY approach may work for you. Be careful however to not over stretch yourself and cut corners in this regard, remember a bad google review is just around the corner. If all that sounds like too much of a headache why not give Arch Living a call on 0116 2706699 and take advantage of a local agency taking all of that off your hands.
5. Why not ask yourself a really basic question…What type of tenant do I want? If it’s local students consider properties with en-suite bathrooms and furnishings as these things are big selling points. If its professionals you’d like to attract, make sure the property is tidy and comes in neutral colours so the tenants can make the interiors their own. Of course these are just a few examples, consider really doing your research before you rent your property out and know your audience as well as you can.
6. Before the tenant steps in to your new property you need to agree the terms of the tenancy. Make sure this is all done in a written format and set out the terms and conditions of the tenancy in detail.
7. Any tenancy can be for a fixed term (usually 6 or 12 months), or extend in to a 'rolling' tenancy. This is where the contract renews month by month, so should you need to take back the property you’ll need to give the tenant plenty of notice.
Sadly, we can’t cover everything you need to know when starting out as a Landlord, but these are just some of the things you can get familiar with straight away. As an agency we’re always looking to help those on the first run of the ladder with no obligation or pressure to come on board. Give us a call today on 0116 2706699 and we’ll be happy to point you in the right direction!
