- August 15, 2017
With your eye on the prize of a profitable return from your property investment it can be very easy to miss the traps that line the rental road ahead.
Being a landlord is not easy.
It can be profitable and it can be rewarding, but it is never straightforward. And legislative change can mean that the goalposts keep moving.
Whether you are looking at becoming a ‘professional’ landlord, hoping to use property to supplement your income from your ‘day job’, or you are an accidental landlord who has fallen into property, it’s worthwhile considering exactly what being a landlord entails before you commit yourself.
A common misconception is that landlords simply find a tenant and then sit back as the rental income rolls in.
Nothing could be further from the truth!
Here are six common traps that new landlords can easily fall into. And there’s also one way that you can make being a landlord as simple as you have dreamed it could be.
Let’s outline those traps first:
• The time trap
Being a landlord invariably takes up much more time than you think.
It’s not just preparing the property and making sure it’s legally compliant, or finding out what legal compliance is in the first place. It’s finding tenants, running checks, and keeping tenants. Because an empty property is simply a drain on your finances.
• The legal compliance trap
The law regularly changes, and if you are using out of date tenancy agreements or notice templates you can quickly become unstuck.
It can mean that if things go wrong you are unable to obtain possession of your property.
• The inventory trap
If you do not complete a comprehensive inventory when each tenancy starts, including a schedule of condition, it is impossible to prove that a tenant has caused damage to the property or goods have been removed.
• The insurance trap
Taking out buildings insurance is not enough.
You will not be covered for rent arrears, for example. Alongside your contents insurance you should consider landlords insurance and rent guarantee insurance.
• The eviction trap
Should the worst come to the worst and you need to evict tenants it can be a costly process. And it can cost you in time and money.
• The checking trap
The best way to avoid problems is to do all you can to ensure you only rent out your property to good tenants.
Unfortunately references from employers and previous landlords do not offer 100% guarantees. But, it can reduce your exposure to risk dramatically.
Is there such a thing as risk-free renting?
If you don’t have the time, or you don’t fancy the risks, there is still a way you can be a landlord and avoid all the traps.
We offer a Rent Guarantee Scheme that gives you complete peace of mind and financial security.
You simply lease your property to us, and we rent it, maintain it and deal with any issues as they arise. And we guarantee you rent every single month, regardless of whether your property is occupied or not.
This is risk-free renting that frees up your time to get on with your life but guarantees you the rent you need.
It’s being a landlord, without the traps.