You need robust systems and a professional attitude to protect
your investment and ensure you don’t wind up out of pocket or on the wrong side
of the law.
To find out what it takes to
manage several rental properties, read our guide, the Five Rs of Making the
Most of Your Property Portfolio.
Responsibilities
As a landlord, it’s important to understand your legal and
ethical responsibilities.
There are more than 175 rules and regulations that you need to
follow, covering everything from gas and electrical checks to handling
deposits. Get something wrong, and you could be fined, face a lettings ban or
even wind up in jail.
Landlords also have a duty of care to their tenants. In our
experience, landlords who do the right thing by their tenants fare much better
in the long run. Treat your tenants well, and they’re more likely to treat your
property with respect.
Role
Your role is to ensure your property is safe and in good condition,
but that doesn’t mean you literally have to do everything yourself. The most
effective way to manage a portfolio is to draw on the expertise of
professionals. A good accountant will advise you on being tax compliant and
efficient, while a top letting agent will manage the day-to-day running of your
properties. Having reliable tradespeople in your contacts and a savvy mortgage
adviser is also worthwhile.
Rent
The key to a successful tenancy is to set the rent at the right
price; this means finding the sweet spot between making a good return and
securing a reliable tenant who stays the distance. And remember, the highest
price isn’t always the best option. If you get too greedy and your tenant feels
ripped off, they’ll move on quickly enough, meaning you’ll have to find new
tenants and possibly cover a void period.
Repairs
Don’t skimp when it comes to repairs and maintenance. The longer
you take to fix a small problem, the greater the risk that it turns into a
major one. Set aside funds to cover repairs and maintenance, so you don’t get
caught short.
Review
Even when things are going well, take time to review your
situation. Are you paying too much for insurance? Are you still on the best
mortgage deal? Does one of your properties need a makeover? It’s essential to
regularly check how things are going and identify any potential savings or
areas where you can improve.
To find out about our property management services, contact us
here at Ridgewater Sales and Lettings.