How to become a successful landlord
Forth Action Invest on January 3, 2023Are you looking for tips on how to become a successful landlord? Or are you renting out your property for the very first time and looking for advice? We’ve got you covered with everything you need to know.
And remember, you’re not alone! The private rental sector is now the second largest tenure in England, and is home to 19% of all households, compared to 14% in 2008-09.
It’s a popular investment style for passive income, but not everyone has what it takes to become the dream landlord.
It can be difficult at times as being a landlord requires consistent and open communication. And becoming a great landlord means you must be trustworthy, organised and transparent – at all times.
Not only do you have to be efficient with reporting and relaying information, but there are various legal requirements you have to stay on top of. These are paramount for protecting your tenants and keeping them safe within your property.
Let’s look at how to become a successful landlord and some actionable tips to bear in mind…
*Please note this blog does not constitute investment advice. Conducting your own due diligence and being aware of risks before making any investment is key. Seeking independent financial advice may be appropriate.
How to become a successful landlord: Is being a landlord worth it?
Being a landlord can be challenging due to there never being a switch-off point.
Tenants could call at any time of the day with concerns or reports of immediate repairs, but many view it as a great way to earn an additional income stream.
Choosing a property and securing a deal with great rental yields will bring in monthly income, with the property generating profit as it sits in your possession over time.
In January of 1998, the average house price in the UK was £69,757, whereas the average house price in August of 2022 was £296,000. Typically, every year that you hold investments in property, the value grows. And in the meantime, your investment property can bring in money each month to cover the cost of the mortgage, and any repairs, with money left over.
For those looking to secure a great deal and ensure you’ll have money coming in every month, Forth Action Invest – property specialists in the North West – have a ‘Guaranteed Rent Scheme’ so you can sit back while your investment is in the right hands.
Project at Forth Action Invest
What you need to know when becoming a landlord for the first time
When starting your buy to let portfolio, or renting out for the first time, there are various legal responsibilities you must be aware of.
Some of the main laws include:
- Gas Safety [Installation and Use] Regulations 1998
- Furniture and Furnishings [Fire and Safety] Regulations 1993
- Electric Equipment [Safety] Regulations 1994
You must adhere to all of the essential requirements laid out in each of these laws. And make sure you’re staying on top of government updates as these can change and be amended at any time.
All of these laws and regulations are in place to protect your tenants and keep them safe. This includes regular gas and electric safety checks. As well as smoke and carbon monoxide alarms to be supplied and installed.
4 Top Tips: How to become a successful landlord
Being a successful landlord is not only beneficial to your tenants, as they’ll feel at ease knowing everything is organised and they can communicate any issues quickly, but will also be an advantage to you.
You’re more likely to retain lovely tenants if they’re happy with your service. This lowers cost and valuable time as you won’t have to search for new tenants every time the contract ends.
Your great reputation (or otherwise…) may follow you around as well which could ramp up the number of potential tenants (or limit them.)
Here are some top tips on how to become a successful landlord.
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Make sure all regulations are adhered to
This is an absolute must as it can cause serious legal problems otherwise.
They can change regularly too so keep up to date with the legalities.
As a landlord, it is your responsibility to keep your properties safe and free from health hazards.
Landlords are generally responsible for repairs including issues with the structure and exterior of the home, the walls, roof, foundations, drains, guttering and external pipes, windows and external doors.
Repairs usually also include issues with basins, sinks, baths, toilets and the pipework, water and gas pipes, electrical wiring, water tanks, boilers, radiators, gas fires, fitted electric fires or fitted heaters.
You may have added additional responsibilities into the tenancy agreement which must be adhered to at all times.
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Refurb or fix up
Beyond the regulations you have to adhere to, furnishing your property could be an easy way to maximise your rental profits and appeal to a much wider audience of potential tenants.
Providing furniture means the moving process can be quicker for tenants, saving them money in the process.
While you’ll have to spend some money in the beginning stages, buying quality furniture will stand the test of time meaning you won’t have to fork out each time a new tenant commits to the property.
You will have to buy furniture that is fire-resistant to comply with landlord regulations. Any electric goods must be PAT tested and certified as safe – the same goes for gas appliances which must meet gas safety regulations.
Making your house a home will be greatly appreciated by many tenants.
Project at Forth Action Invest
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Decide on tenancy terms as early as possible
A tenancy agreement is vital each time a tenant signs up to rent out your property.
The agreement outlines statutory rights for both the landlord and tenant (implied terms which are given by law) and expresses terms (additionals that are written into the agreement.)
Here are some key details to add:
- Names of both parties and the address
- Date and length of the tenancy
- Details of who’s allowed use of the property and which rooms
- What the rent payment includes
- How much the rent will be and when it should be paid
- What services the landlord will take care of
- The notice period for ending the tenancy
Establishing and deciding on these terms as early as possible will help to keep everyone on the same page throughout the tenancy.
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Communicate regularly and frequently
Long gone are the days when handwritten letters to tenants are the only communication tool. Effective communication can take place via email, calls, and even WhatsApp.
A quick text is great for payment checks, arranging viewings, tenants reporting repairs, and many more situations you’ll likely face.
Whereas emailing is necessary for logging clear records of communication. Again, this could be used for tenants reporting repairs and sharing key documents.
Level up by working with professionals
Becoming a successful landlord comes down to two things: providing a great service to your tenants and communication.
Communication between landlords and tenants has no time limits. If something breaks in the middle of the night, you’ll be the first one they call.
For those who are busy or simply don’t want to be on call at every hour of the day, outsourcing the management of tenants can save you hours in time and resources.
Outsourcing will provide you with a more hands-free approach, with professional experts taking over every stage.
This means you can sit back knowing your property is in good hands, tenants are happy, and guaranteed rent rolling in every month.
Here at Forth Action Invest, we offer a ‘guaranteed rent scheme’ which is ideal for new investors who are cautious about expanding their portfolios or landlords looking to future-proof their finances.
To learn more about Forth Action Invest’s Guaranteed Rent Scheme, book a free consultation here.
*Please note this blog does not constitute investment advice. Conducting your own due diligence and being aware of risks before making any investment is key. Seeking independent financial advice may be appropriate.