Renting out your first home can be both an exciting and daunting experience. As a new landlord, you’re stepping into the world of property management, where the decisions you make can have a lasting impact on your investment.
From tenant screening to understanding legal obligations, being prepared will help you avoid common mistakes and protect your investment. Home and property experts Alan Boswell Group have gathered 8 key tips from industry expert Heath Alexander Bew to help you navigate the complexities of being a first-time landlord, including how to spot common ‘red flags’ that could signal trouble down the road.
Screen Tenants Thoroughly
One of the most important steps in renting out your home is finding the right tenants. Take your time during the screening process—check credit scores, verify employment, and speak with previous landlords. Be on the lookout for red flags like poor rental history, or reluctance to provide references. Trust your instincts; if something feels off, it’s okay to move on to the next applicant.
Heath Alexander-Bew at Alan Boswell Group comments: “Thorough tenant screening isn’t just about protecting the property; it’s about building trust and ensuring peace of mind for everyone involved. A little diligence upfront can save landlords from countless headaches down the road.” If you don’t yet have the confidence to go it alone, think about employing the services of a letting agent, for a fixed percentage of the monthly rent, they can do all of this for you.
Know Your Legal Responsibilities
Being a landlord comes with a set of legal obligations that you need to understand. This includes everything from drafting a solid tenancy agreement to knowing your rights and responsibilities regarding property maintenance and tenant privacy. Ignorance of the law can lead to costly disputes, so take the time to educate yourself or consult with a property lawyer.
Heath Alexander-Bew adds: “While not mandatory, it’s highly advisable to have a written tenancy agreement outlining the terms and conditions of the tenancy. This protects both landlord and tenant. If a landlord takes a deposit from a tenant, it must be placed in a government-approved Tenancy Deposit Protection scheme within 30 days of receipt.” Having a tenancy agreement in place is often a requirement for landlord insurance. If you don’t yet have the confidence to go it alone, think about employing the services of a letting agent, for a fixed percentage of the monthly rent, they can do this for you including drafting the tenancy agreement.
Set Clear Boundaries
Establishing clear boundaries with your tenants from the start can prevent misunderstandings later on. Make sure your tenancy agreement clearly outlines the rules of the property, such as pet policies, maintenance responsibilities, and what is considered acceptable use of the space. Clear communication upfront can save you from headaches down the road.
Price Your Rental Competitively
Do some research to determine the going rate for similar properties in your area. Pricing your rental too high can leave it sitting empty, while pricing it too low might attract less reliable tenants. A fair, competitive rate will not only help you fill the property quickly but also ensure you’re attracting tenants who can afford the rent.
Stay on Top of Maintenance
Regular maintenance not only keeps your property in good condition but also helps you avoid larger, more expensive problems in the future. Respond to tenant repair requests promptly, and schedule regular inspections to ensure everything is in working order. A well-maintained property attracts better tenants and can reduce turnover. If you are using a letting or management agent they may be able to extend their services to include fixing maintenance issues.
Keep Good Records
Staying organised is key to a successful rental experience. Keep detailed records of all communications with tenants, rent payments, maintenance requests, and any expenses related to the property. This will not only help you manage your property more efficiently but also provide crucial documentation if any disputes arise.
Get the Right Insurance
Standard homeowners insurance may not cover rental properties, so make sure you have the right coverage in place. Landlord insurance typically covers property damage, liability, and loss of rent following a material damage claim rendering the property uninhabitable.
there are additional cover such as ‘rent guarantee’ insurance.’. This extra layer of protection can give you peace of mind and protect your investment from unforeseen events. Home emergency cover is also available to help cover things such as total loss of heating system, electrics, vermin infestation, blocked toilet etc.
Heath Alexander-Bew comments: “Overlooking the right insurance for your rental property is a risk no landlord should take. Landlord insurance isn’t just an added cost; it’s a vital safeguard that shields your investment from the unexpected, ensuring you’re covered when it matters most.”
“UK landlords have several options for landlord insurance, including providers like Alan Boswell Group, . Who offer a arrange of policies with different insurers, some of which have been endorsed by Which? As best buy or best cover. These insurers offer customisable policies that cover buildings, contents, liability, and optional extras like rent guarantee and legal expenses and home emergency cover”
Trust Your Gut
Sometimes, even with all the proper screening, something might not feel right about a potential tenant. If you have any doubts, it’s okay to take a step back and reconsider. Trusting your gut can save you from potential headaches, such as dealing with a problematic tenant who could cause damage to your property or create legal issues.
