For anyone about to take the plunge and let a property for the first time, there are quite a few things you should be aware of.
There are legal considerations to think about, safeguards to be put in place (for you and your tenants) and that’s before you’ve even thought about who or what agency will look after your investment.
With decades of property experience on our side, we’re bound to have been there and seen it all before!
Here are our top tips for any fledgling landlords:
Make rent the priority
Rent is your revenue - your bread and butter. Without it your investment plans and strategies are worthless.
Be prepared to work with tenants who genuinely need a bit of help, but warning bells should be ringing if rent is late and the tenants stop communicating with you.
Talk to us about how we manage tenants in these situations.
Screen tenants properly
Getting the right tenants into your property is probably the most important part of the entire rental process, there is much more to consider than whether or not they have a good credit score.
Even if you’re planning to manage your investment yourself, it can be worth working with a reputable, experienced lettings and management agent like Progressive Lets to source great tenants on your behalf. It really is worth spending time in this area and you might be surprised at how cost effective it is.
Know your housing laws
We’re always amazed how many property investors fail to educate themselves with housing laws. Violating them can result in serious issues and failure to arm yourself with this knowledge is a short-cut simply not worth taking.
However, housing laws can be complicated and change frequently so it’s worth enlisting the help of experts who can simplify the laws for new landlords or those investing for the first time.
Work with the right letting and management agent
If you decide to work with an agency to fully or partly manage your property, it’s worth shopping around to find one who will work with you as partners rather than treating you as ‘just another landlord’
As an independent but aspirational company, we are able to offer you a really personal service and have a range of landlord options across HMOs, serviced accommodation and single lets.
Don’t invest in renovations that won’t see a good return
Remember this property will not be your home so you must try to avoid investing in renovations that won’t necessarily increase the amount of rent you’re able to charge.
Of course, it’s worth presenting a tidy, well-maintained place in order to attract good tenants, but think really carefully about adding unnecessary features to the property that may not be wanted, needed or appreciated.
Treat your new investment as a business. Keep proper records of your revenues and expenses, otherwise how will you ever know whether it’s profitable? This is also important for tax return purposes which can be stressful to prepare. That said, if your property is managed by agent like Progressive Lets, they will be able to prepare and support you with your end of year accounts.
Whether you’re experienced or new to investing, take five minutes to read our comprehensive landlord guide and find out how we could help you.