The Landlord Lifecycle: How to be a Landlord in 5 Easy Steps
Published on November 10, 2014 by Sarah Mac
Whether you’ve just bought your first buy to let property, or are planning on letting your current home once you’ve moved in with your partner, becoming a first-time landlord can be an exciting but daunting experience. However, by following just a few easy steps, the landlord process can be incredibly profitable.
Whatever your reason for becoming a landlord, make sure you do it right. Here’s our at-a-glance guide on how to be a landlord:
1. Preparing your Property
As with anything, preparation is key. Ensuring your property is up to scratch and has had all of the legal checks such as a Gas Safety Certificate is vital, and will save you from future problems. Preparations include insuring your property and its contents with a specialist landlord insurance provider, and making sure that all fixtures and fittings are adequate.
One of the most important aspects of preparing your property for the rental market is drawing up an inventory. This is a document which details the condition of your property on your tenant’s arrival, as well as that of any appliances or contents included in the let.
It’s vital that this document is comprehensive, and therefore it’s strongly recommended that the first time landlord uses an inventory clerk who is a member of the Association of Independent Inventory Clerks (AIIC).
An experienced inventory company’s attention to detail will be second to none, and if you have any problems with your tenants, an inventory will also stand up in court as a piece of evidence.
2. Marketing your Property
Once your property is ready to let, it’s time to get advertising. Use a property portal or a high street letting agent. Remember you’ll need an Energy Performance Certificate (EPC), and you need to be able to produce this within seven days of advertising your property.
3. Getting Tenants in
Once you’ve found your tenants, make sure you have them referenced. If everything checks out, you’ll need to collect your tenant’s deposit against damage and protect it with a government approved scheme. Check this link for more information: https://www.gov.uk/deposit-protection-schemes-and-landlords/overview.
You may also want to take out a Rent Guarantee Insurance Policy, to protect yourself against the possibility of rent arrears should your tenants not be able to pay. These are widely offered by leading insurance companies.
You’ll then need to supply your tenants with ‘Prescribed Information’, which is a number of different requirements as set out in legislation, such as a certificate to show that your tenant’s deposit is safe. You can then issue the appropriate tenancy agreement.
4. Managing your Property
Managing your property is an ongoing job, and will involve carrying out regular inspections, maintaining communication with tenants (ensure that you keep copies of any written correspondence) and making sure any problems that arise with the property or appliances are dealt with in a timely and efficient manner.
If you’re managing a portfolio, many of the management aspects can be carried out by a letting agent to save you hassle and precious time. Any interim inspections are usually best carried out by the inventory company that carried out the check-in inventory, as they will easily be able to cross reference against the initial inspection.
5. Vacating the Property
Once the term of the let comes to an end, if your tenants move on, you’ll need to start the cycle again. You’ll need to get in a cleaning company and redecorate where necessary as well as deal with any other snagging issues.
You’ll also need to have an inventory check to make sure that everything is as it should be, including fair wear and tear on the contents. The inventory company that carried out the initial inspection will carry out a detailed check of your property and will judge whether any deductions need to be made from the tenant’s deposit to cover any damage.
If everything is as it should be, you can return your tenant’s deposit in full and let your insurance company know that that the property will be temporarily unoccupied if relevant.
There’s a lot to think about, but as long as you have a trusted team behind you, including a good inventory company and letting agent, it should be plain sailing.