Running your own business as a landlord is great. You have excellent income opportunities, fantastic growth potential and the chance to build up your own mini-empire.
And, while there are many excellent benefits to being a landlord, there are some downsides too, such as tenants who refuse to pay rent, for example. However, you can minimize the risk of things like squatters and hefty repair bills by being well-informed.
To help you run a successful business as a landlord, we have put together a guide to everything you need to know. To find out more, keep reading below:
1. Always Do Credit Checks
Don’t rent to anyone until you have done a credit check on them. If a potential tenant has a bad credit history and is unable to provide references from their last landlord then don’t allow them to move into your property.
2. Have the Tenancy Agreement in Writing
Have the tenancy agreement in writing. Regardless of whether you are renting to a family member or a total stranger, have the terms of the tenancy in writing. This will prevent any problems springing up, like a dispute over the amount of pets a tenant can keep, for example. If you have it in writing, then there is no dispute to be had.
3. Establish a Deposits System
Establish a fair system for taking, holding and returning deposits to your tenants.
Do a property check before a new tenant moves in and take a note of any problems or issues, such as a crack in the floor, etc. This will stop any disputes from occurring about deposits when the tenant moves out in the future.
4. Keep on Top of Maintenance and Repairs
Keep on top of each properties maintenance and repair needs, so that it is easier to fix problems if they occur.
If you don’t have the time to maintain your properties properly, consider employing a handyman to deal with these kinds of things for you.
5. Get Landlord’s Insurance
Get landlord’s insurance. This really should go without saying. If you run your own home rental business, get landlord’s insurance. That way you are covered if anything goes wrong.
From fire damage to damage by tenants, if you take out UK landlord insurance then you are covered and don’t need to worry.
6. Respect Your Tenant’s Privacy
Respect the privacy of your tenants. It may be your property, but it is their home, so show them some respect and give them their privacy.
Always give tenants at least 24 hours notice before you plan on popping over, preferably a little longer. This gives them time to prepare for your arrival.
7. Try to Solve Any Problems Out of Court
Always aim to solve problems or arguments with tenants without any lawyers or lawsuits.
If you have a dispute with a tenant over repairs, maintenance, rent, noise, etc. meet with them to discuss it. Try talking it through with them and see if you can solve the problem amicably. This is a much better route to go down, rather than going through the courts.