With so much demand for rental property, it is easy to see why many people believe being a landlord is a lucrative position. However, while there is a chance to generate rental income on a monthly basis, being a landlord can be a time-consuming activity with a lot of responsibility and pressure.
If you want to be a landlord, make sure you know what the role entails and this landlord guide will hopefully provide you with all the knowledge you need to know in order to make an informed decision on the role.
You should seek as much help and guidance as you can as a landlord. Speak to letting agents and property management service providers about what the role entails and make sure that you are happy in the role of a landlord. Being a landlord isn’t for everyone, so if you decide against the role, it is best to do this before you make a major commitment.
It is vital that you review your finances, create a budget and know exactly what you are working with. Whether you intend to buy property or you have existing property which you can let, you will find that being a landlord incurs a lot of expenses. Knowing what you can afford to pay, what sort of mortgage you can receive and what flexibility you have with your finances will help you make an informed decision as to what you can do in the rental market.
If you are buying property to let, review the market and find the best option for your needs. You may want to buy close to home so you can be a hands-on landlord but you should also consider the expected rental yields. Buying in an area with a larger expected rental yield can help you enjoy a greater profit, so choose wisely.
While the right area makes a difference to what you can achieve as a landlord, you want to review the condition of the home too. Depending on your budget, you may need to choose a home that needs repair and maintenance work carried out but if the property is in poor condition, it will impact on the rental income you can receive and the tenants who will hold an interest in your property.
These are big factors in the work you will have to do as a landlord. There is a wide range of people, from all backgrounds looking for rental accommodation, and it makes sense to focus on one set of people. The condition of your home and how you offer the property should be linked to the tenant you want to attract, so consider these aspects together before placing property on to the market.
The quality and dependability of a tenant is one of the most important features of being a landlord. When you have a reliable tenant who protects the property and pays on time, your role is much easier. If you are uncomfortable vetting tenants or seeking references, hire a professional to do so because this is hugely important.
Other quick tips to bear in mind for landlords:
Being a landlord can be rewarding but it is vital that landlords understand the magnitude of their role. This landlord’s guide will hopefully help you determine if being a landlord is right for you and Nathan Andrews Estates is here to help you deliver the best possible service.
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