Being a landlord is not straightforward. While many people like to describe it as offering ‘passive income,’ this is not accurate. You take on enormous stress when you decide to let out your property—from maintenance to security to collecting rent and much more.
So, what can be done to relieve the headaches associated with owning a property and ensure your life is not too stressful? Our seven-step list below provides a clear guide to this subject.
1. Use a high-quality letting agent.
One of the best things a landlord can do is partner with a high-quality letting agent to help manage their rental property.
An excellent letting agent handles advertising, conducts viewings, thoroughly vets applicants, collects rent, and fields maintenance requests. This lifts a huge burden off the landlord’s shoulders and provides an invaluable service.
Additionally, consider building a reliable network of contractors and service providers. This can help you address maintenance issues quickly and efficiently, reducing stress and improving property management.
What to look for in a letting agent?
Reputation
When looking for a letting agent, reputation and experience should be prioritised. Reviews from other landlords and tenants can give insight into customer service and responsiveness.
Local Knowledge
It’s ideal to find an agent familiar with rentals in your area. Local knowledge helps them price properties accurately, advertise strategically, and identify good tenants.
Solid Network and Professionalism
Active involvement in landlord associations demonstrates a commitment to continuing education and best practices. Additionally, consider interviewing potential agents to gauge their professionalism and communication skills.
A high-quality letting agent is worth the fees because it can significantly reduce stress. They have systems and procedures that improve compliance and minimise mistakes, with oversight that gives you peace of mind. Property management is their full-time job, so they know how to handle challenges quickly and efficiently.
Although getting an excellent letting agent is essential, there are better options than this if you want to sell your tenanted property. Exploring other methods (such as using a cash house buyer) is a good idea in this position.
2. Get all the certificates needed for appliances.
Before renting a property, it’s essential for landlords to have all legally required safety and inspection certificates. Being caught without proper certification can lead to hefty fines or lawsuits if issues arise.
You are typically expected to renew these certificates annually, so staying on top of expiration dates is crucial. This proactive approach not only ensures compliance but also instils a sense of confidence and preparedness.
Gas Safety Check Certificate
For gas appliances, a Gas Safety Check Certificate is required by law. A Gas Safe registered engineer must inspect gas installations like boilers, cookers, and fireplaces annually. They will assess for leaks, carbon monoxide risks, proper ventilation, and more. The engineer will provide documentation after testing the appliances.
Electrical Installation Condition Report (EICR)
An Electrical Installation Condition Report (EICR) certificate is also a must-have. A qualified electrician will thoroughly test the property’s electrical system at least once every five years. This identifies deficiencies you’ll need to address, such as faulty wiring, lack of earthing, or overloaded circuits. The electrician will provide documentation listing passed and failed elements.
Energy Performance Certificates (EPCs)
Energy Performance Certificates (EPCs) are now required when renting out homes. They summarise a property’s energy efficiency based on insulation and heating. You must provide new tenants with documentation showing the energy rating. EPCs are valid for ten years. Staying on top of renewal dates for all documentation helps avoid major issues down the road.
3. Take note of your inventory.
A detailed rental property inventory can prevent disputes and ensure tenants care for the space. The inventory should thoroughly document the condition of the entire property at the start and end of a tenancy. This includes things such as:
- Furniture provided
- Appliances and electronics
- Decoration such as paint, wallpaper, blinds
- Flooring and ceilings
- Bathrooms and kitchen fittings
- Outbuildings like sheds and garages
Photographic evidence is beneficial for an inventory. Date-stamped photos or videos clearly confirm the property’s state during handovers. Written descriptions should accompany pictures, noting faults, damage, or wear and tear.
Tenant Inventories
Give tenants ample time to review inventories at move-in and move-out. They can request amendments if anything needs to be corrected or completed. Both parties must sign off on the final inventory.
This provides proof of the property’s condition and makes security deposit deductions fair if tenants cause damage. Keeping an updated inventory takes diligence but avoids major disputes down the line.
Additionally, consider implementing a system for handling tenant turnover, such as conducting thorough inspections and promptly addressing maintenance issues, to ensure a smooth transition between tenants.
4. Work out your figures in advance.
Finances are a big part of being a successful landlord. Taking time to understand expenses and savings can prevent issues when unexpected costs pop up. You should calculate projected costs before listing a property.
Consider using property management software to track your expenses, income, and other financial aspects of your rental property. This can help you stay organized, make informed financial decisions, and reduce the stress associated with managing your property’s finances.
Some of the essential figures to estimate include:
- Mortgage payments
- Insurance premiums
- Property taxes
- Agent fees
- Regular maintenance
- Emergency repairs
- Periodic upgrades or renovations
- Void periods between tenants
Be conservative with income estimates and liberal with expenses. For example, it is worth budgeting for substantial security deposits just in case tenants cause damage. You may also want to leave padding for unpredictable costs, such as a broken boiler.
Prepare for all financial scenarios
You should evaluate different scenarios – for example, what happens if a tenant leaves suddenly or rental income decreases? It is worth considering all financial obligations carefully before renting your property and speaking with experienced landlords and agents to get insight into typical costs.
By understanding figures upfront, you can set rents at an amount that will cover all expenses and generate reasonable returns. You’ll also be prepared to handle unexpected costs without financial hardship. Doing the maths ahead of time provides peace of mind.
5. Pay for a professional cleaner.
First impressions matter, so you should ensure that rental properties are as clean as possible before your new tenants move in.
Hiring professional cleaners is well worth the investment for move-ins and move-outs.
- They have industrial equipment and cleaning agents that you may need more.
- Deep carpet cleaning removes embedded stains and odours that gradually build up.
- Appliances and bathrooms are sanitised and scrubbed.
- Walls and blinds are washed to remove grease and dirt.
- Cobwebs and grime are cleared away, leaving the property fresh and inviting.
Tenants appreciate the effort put into providing them with a clean space to move into. It gets the relationship off on the right foot and establishes expectations for how they should care for the home. Professional cleaning services can also do touch-up cleaning between tenants, making the property rent-ready faster. Some cleaners even offer repairs and repainting services for an all-in-one solution.
6. Vet your tenants thoroughly.
Ensuring the security and well-being of your property is paramount. This is why finding responsible tenants is one of the most crucial aspects of being a landlord.
Problem tenants can cause significant issues, from noise complaints to property damage or even refusal to pay rent. That’s why thoroughly vetting applicants before offering a lease is so crucial, as it provides a sense of security and protection for your property.
Get Tenant References
Request references from previous landlords, employers, and character references. Follow up with them and ask questions about reliability, cleanliness, communication skills, and prompt rent payment. Review the tenant’s credit score and report to spot red flags like frequent late payments or arrears.
Estate Agent Vetting
Use your estate agent as a resource in the vetting process. They likely have relationships with previous landlords and additional insights from prior applications. Refrain from accepting subpar tenants just to fill vacancies. A few weeks of extra searching is worthwhile to find quality long-term tenants.
7. Find local handypersons that you can trust.
Even the most responsible tenants will inevitably submit maintenance requests occasionally. Issues can arise in every building, from loose door handles to appliance repairs. Having a roster of reliable handypersons makes responding to requests easy and efficient.
Search for insured handypersons located close to your rental property. Browse online reviews and ask for references to verify quality artistry. Meet in person and communicate how you want to handle callouts and repairs.
What are some questions to ask prospective handypersons?
- What are your rates and minimum fees?
- What hours/days can you respond to emergencies?
- How quickly can you respond to non-emergency repairs?
- Do you provide written quotes for larger jobs?
Make sure they understand your expectations for communication and punctuality. Clarify how to access properties securely when tenants aren’t at home. Knowing you have a trusted handyman on standby will allow you to handle maintenance calls calmly. Keep their information on file and provide it to tenants in their welcome packet.
