If you’ve become a landlord due to unexpected
circumstances such as bereavement or a new relationship, here’s some helpful
advice. A two-minute read.
It’s
surprising how many people become landlords more by chance than design – or in
other words, ‘accidental landlords’.
Whether
through inheritance, a change in a relationship or a new job, sometimes people
find themselves in the (rather fortunate) position of owning a property that
they don’t want or need to live in. And instead of selling up, the owner
decides to rent the property out.
While
this usually works out well in the long run, accidental landlords can slip up
if they underestimate what the job involves – it’s not as easy as it looks.
Here
are four tips for accidental landlords.
1)
Talk to your lender
If you have an owner-occupier mortgage on the
property, you must notify your lender if you intend to rent it out (otherwise
you could be penalised). Sometimes, the lender will grant ‘consent to let’,
which is permission to rent the property under your existing mortgage. But this
is usually a short-term solution, and you’ll probably be expected to get a
buy-to-let mortgage eventually.
2)
Get landlord insurance
A bog-standard home and contents policy won’t
suffice – you’ll need specific landlord insurance. Do your research on this
because the policies on offer can vary significantly. On top of buildings and
liability cover, some policies allow you to opt in to cover legal costs, loss
of rent, or accidental damage.
3)
Understand the rules on deposits
There are strict laws regarding tenant deposits.
When a tenant pays you a deposit, you must register it within 30 days with a
government-approved scheme. (This is a third-party scheme that protects tenant
deposits.)
4)
Get to grips with red tape
There are all sorts of laws – at least 175 – that
apply to UK landlords covering everything from evictions and gas safety to
electrical checks. It can be overwhelming trying to get your head around these,
but most successful landlords develop systems to make sure they stay on top of
things. And if you really wanted to sit back and let someone else take the
strain, employ the services of a professional letting agent to do it for you.
To
learn more about our property management services, contact us here at Ridgewater Sales and Lettings.