Renting: What Every Landlord Needs To Know
If you’re considering becoming a buy-to-let landlord to make some extra cash, there are a few things you should know. Renting out a property isn’t one of the easiest endeavours in the world, but it could help you to increase your income and get a property portfolio started. You’re unlikely to make a lot of money from one property alone, but if you aim to buy multiple properties, you could create a great second income.
Here are some important things to consider when considering becoming a landlord and renting out your first property.
Renting Expenses To Consider
You’ll first need to consider the expenses that come with property purchase – this is largely the same as buying a property to live in yourself. They include:
- Stamp duty
- Valuation
- Property survey
- Legal costs
- Mortgage arrangement fees
- Income tax payable on your rental income
Bear in mind that if you already have a property with a mortgage you will need to seek your lender’s permission before you can rent it out.
Day To Day Costs
You’ll also have the day to day costs of being a landlord to consider. They include:
- Letting agent fees
- Redecorating
- Mortgage interest
- Landlord’s insurance
- Rent insurance
- Annual safety checks
- Building maintenance
- Energy performance and gas safety certificates
- Smoke & Carbon Monoxide alarms
A general rule is that the larger the property, the more it costs to run. That’s because there’s usually more to break and maintain. Additionally, larger properties are usually rented to families, meaning there are more people living there, and in particular children living there.
Figuring Out How Involved You Want To Be
Usually, renting out a property like apartments for rent in Boston allows you to be as involved as you like. You can have somebody handle the entire process for you for a fee, or you can take control and do as much of it as you can. You’ll save money with the latter option, but the hassle may not be worth it. It’ll be your responsibility to answer emergency calls and respond to them no matter what you are doing, and this can be stressful. A guaranteed rent management service will provide you with 100% guaranteed rent, no void periods, monthly property inspections, and more.
You need to consider that when you have a tenant in your property, you must effectively work for them. Repairs and inspections are your responsibility, and your tenant must be living in a suitable place. You will be liable if you do not make the property a safe and liveable space for your tenant.
Know Who You Want To Work With
A certain property type will attract a particular audience. A small flat won’t be suitable for families, for example, so you’ll want to target couples and singles. Here are further pointers that can help you on your journey:
- Are you providing everything you should be? – this includes documents, inspections, contact details, and more according to the law.
- Thorough cleaning – naturally, you’ll have people move out. Having a thorough clean in between your tenancies will help attract new tenants.
- Review tenancy agreements – you must remain compliant.
- Look for better suppliers – you could help to save your tenant money on energy bills.
- Make a note of important dates.
- Add interest to your property to make it a more attractive place to live.
- Ensure your letting agents and tenants are aware of the dates you will not be available.
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