If you like the idea of being a landlord and renting out your property, you’re not alone; it’s a dream that many people have, and since it’s a very easy sector to get into – as long as you have the money and are prepared to put in the hard work – it’s something that many people have chosen to do (especially as the UK rental sector is said to be growing and by 2030 two thirds of people will be living in rented accommodation).
However, just because you can do it does not mean you should; there are many factors to consider first. Here’s a guide to help you determine whether renting out your property is the right thing for you, as well as things to think about after you start.
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Are You Prepared For This Level of Responsibility?
There are many advantages to renting out your property and being a landlord, and the money you can earn – particularly if you have multiple properties – is definitely appealing. However, there will be work to be done, and it is a responsible task that you must be prepared to take on if you want to be a good landlord.
You will be responsible for maintaining your property, ensuring that any repairs are completed quickly, collecting your rent, and dealing with all of the laws and paperwork that come with renting a home. If you don’t do this properly, you might not only lose money, but you could also acquire a reputation as a poor landlord, making it difficult to attract excellent renters in the future.
Is The Property Ready To Be Sold?
Maybe you inherited a property. Perhaps you’ve moved in with someone else and now have a “spare” flat or house. Maybe you got a fantastic bargain on a home and paid much less than the market value since it requires a lot of repair and modernisation. This is just the start of your landlord adventure, not the finish. It isn’t even in the middle!
Before anybody can move into the property, before you can think about renting out your property, you must verify that it’s fit for human occupancy. This may be a little or large task, but renting it out too soon would only mean that your tenants are unhappy, and possibly unsafe. Making the home ready for renters will cost you money, whether it’s a full renovation or a fresh coat of paint and a garden clean-up. Make sure you have the money, time, and energy to do this.
Should You Hire A Property Management Company?
If you enjoy the concept of becoming a landlord but are concerned about the obligations and effort required to prepare the property as well as maintain it in the future, you might believe that you will be unable to fulfil your goal of being a landlord and renting out your property, and will need to try something else.
There is, however, a remedy. When you see how a property management firm can solve your lettings problem, you’ll realise that you can be a landlord while letting someone else handle the more difficult aspects of the job. A competent property manager will handle all aspects of renting out the home, from screening tenants to collecting rent to organising an inventory to managing maintenance. Then you can sit back and enjoy the benefits.