Being a landlord isn’t easy. However, if you do decide that property investment and rental is something that you want to get into, it can be incredibly rewarding.
The main point to consider when becoming a landlord is all of the things to get right. There are plenty of forums out there that can give you advice on the things to avoid in order to make it a success.
With that in mind, we have put together what we believe are the most common pitfalls that you can face as a landlord. All with the things to avoid if you want to make the property market the right game for you!
Not getting the price right
This can be a difficult part of renting out properties to get right. In fact, many landlords will find themselves either charging too much or too little, and both can have their issues. The main reason that lower than market rent could be charged is because many new landlords (or perhaps even those who have been doing it for a while) want to get a property filled.
They believe that by charging lower rent, they have more chance of appealing to prospective tenants. Whilst, this is often true, and you will have people clamouring at the chance to rent your property. In the long run, you could see yourself losing money by not having high enough rental costs set.
By charging too high a rental figure, you may have the opposite problem. Not attracting any tenants at all. Leaving you out of pocket.
The best way to combat this issue is to look at what other landlords are charging and set yourself around their level. If they are managing to find tenants, then you will too!
Not checking those tenants properly
When you are renting your property out to someone, you are letting them live in a place that belongs to you. That means you should be able to trust them to look after the property whilst they “borrow” it. Returning it in a good condition.
That is why landlords should always make sure they screen prospective tenants properly. Hearing from a friend of someone who needs to rent a property isn’t always going to lead to a positive experience. Make sure that you perform all the relative checks and then you can be sure that the person living there is going to treat the home with care and respect.
Being sloppy with repairs
If there was one bug bear between tenants and landlords it has to be repairs and maintenance. Failing to carry these out in a timely (or quality) fashion can lead to some friction on both sides.
As a landlord, it is your responsibility to make sure that the property is kept up to a good standard, that means you need to be on hand to organise repairs when they are needed. By doing this you are more likely to keep your tenant on side and avoid any issues in the long run.
Not having landlord’s insurance
Insurance is important. Especially if you are a landlord. Normal levels of household insurance are not appropriate for rental properties. Instead landlords should ensure that they take out specialist policies. These are designed to cover all of the eventualities that a landlord could face and will give them the right level of cover. Take a look at insurance providers like UKinsuranceNET for landlord specific insurance policies.
So, now you know those pitfalls to steer well clear of. We hope that you have a successful and profitable experience as your very own property mogul!