Category Landlords

Do you plan to invest in rental property? If that’s the case, you’re definitely not alone. It’s no secret that buying a rental property and managing it can be a lucrative business venture, so it’s no surprise that so many people are eager to get into it. However, finding a rental home and giving over your cash is not as easy as it sounds. Many factors should be thought through before making such a substantial investment. In this article, we’ll share some useful information that will make it easier for you to invest in a rental property. 

Get A Good Mortgage When Buying A Rental Property

The importance of securing a decent mortgage cannot be overstated when buying a rental property. If you need a loan to buy the house, this is of paramount importance. All mortgages are not the same, and there are several to choose from. You should look around and get a few quotes before deciding.

In addition, you should check your financial situation to ensure that you can comfortably pay the mortgage. This is especially important if you intend to be a hands-off landlord and instead work with a property management firm. Keep in mind that even though you will be receiving rent each month, you are still responsible for paying the mortgage each month.

Think About The Location

Location is an important factor to consider when investing in a rental property. After all, getting tenants is why you buy a rental property in the first place. Your property’s location is a major factor in determining whether or not renters will be interested in it. Tenants may be hard to come by and keep if you don’t fix these problems.

As a result, it is crucial to give careful consideration to the location of the rental property before making a final decision. Think about accessibility to public transit and nearby schools as well as the safety of the immediate area. It is easier to locate (and keep) tenants when you’re in a more desirable location.

Be Prepared For Unexpected Expenses

An further crucial consideration is the fact that when buying a rental property, unanticipated costs can and will arise. As a landlord, you’ll inevitably face situations like this. As a landlord, you risk losing money due to a variety of factors, such as maintenance and vacancy.

It’s crucial to have a contingency fund in case of such unforeseen costs. One strategy for doing this is to put money aside on a regular basis. You won’t have to take money from your emergency fund or any of your other sources of income to address any unforeseen costs that may arise.

It’s important for landlords to know what tenants want. What are tenants looking for in a place to live? What should landlords put first when they buy a property to rent out? What turns away renters?

Some landlords find it hard to figure out exactly what their renters want, and some renters find it hard to find a place that meets their needs. In this article, we talk about the most important things that renters want in a place to live and what landlords can do to make renters more interested.

Good Location

When people are looking for a place to rent, location is very important; it’s a crucial factor in what tenants are looking for. Most people want to live close to their jobs, as well as to shops, restaurants, and public transportation.

Obviously, you can’t move a rental property that you already own. But landlords who want to buy a property to rent out should think about where it is and what kind of tenants would be interested in it.

Tenants don’t want to live too far away from things they might need. Especially if they don’t drive and there aren’t many ways to get around. It’s important to live near a local supermarket, a doctor’s office, a pharmacy, and other shops, and families put a lot of value on being close to a good school.

Tenants care a lot about where a place is, so landlords should be sure to list all the nearby services in the property ad so that tenants looking for something specific know they have found it.

Safety & Security

Everyone who rents a place wants to feel safe there. Most people wouldn’t choose to rent a place in a dangerous area, so location and safety are often linked.

In addition to the number of crimes in the area, renters like to know that the alarms and locks on the windows and doors work. Because of this, it is important for landlords to make sure that the rental property has a security system that works.

Landlords can make their tenants feel safer by putting in CCTV, adding extra locks and a peephole to the front door, and making sure that all safety certificates are in place.

Landlords should also schedule a mid-term inspection to check on their property and make sure everything is safe and working. This also gives the renter a chance to talk about any questions or worries they may have.

Outdoor Space

Many renters like having their own outdoor space, like a patio, balcony, or garden. If those options aren’t possible, tenants, especially those with young children, often want to live near a park.

When tenants have outdoor space, they can enjoy the sun during the warmer months, have outdoor gatherings with family and friends, and have a whole other place to relax. People were stuck in their homes for so long during the pandemic that they realised how important it was to have space outside.

If the house has a garden, updating and improving it can make it more appealing to potential renters. This shows the tenants that the landlord cares about the property and is willing to make changes. It can also raise the value of the house.

Have you ever considered staging your living room? Whether you’re a seller or a landlord, staging your living room can mean the difference between a sale/finding a new tenant, or having to wait. When you stage your living room in the right way, it can show the people looking around how they might live, and what can be done with the room. With that in mind, read on for some useful tips.

A New Suite For Staging Your Living Room

If you have an old, sagging sofa in your living room, it’s going to make it look less desirable than if you have a brand new suite. This is why it’s a good idea not to put off buying your new furniture if that’s something you were intending to do anyway. For one thing, you’ll have more money before your move than after (moving is very expensive), and for another, when you’re staging your living room you want to offer up a good impression.

It’s true that the new owners or tenants aren’t going to be using your furniture (although, when it comes to tenants, the option might be there – even more reason to get a new sofa), and you might think it’s no one’s business what your stuff looks like. That’s true, but it’s also true that you’ll create a more positive subconscious impression when there are nice things around you.

Your Carpeting

How does your carpet look? Is it dark, has a lot of patterns, or both? Would having it cleaned by a pro make it look better, or does it really need to be replaced? If the carpet is dirty, worn, and old, it will look like the house hasn’t been taken care of. If you want to show that the house is well-kept, you might want to spend a few hundred pounds on a new, neutral carpet to make staging your living room easier.

Your Lighting

This can really change how your living room looks. Downlighters and table lamps can make a room feel warm and inviting, while uplighting can add a bit of drama. If you have overhead lighting, it’s usually best to turn it off and use your other lighting options to make the room feel more like home.

A property inventory is a very important document to have, whether you are a tenant looking to move into a rented place or a landlord who wants to protect his or her investment. Even though most landlords know how important they are, many tenants don’t care about them. This is a mistake that could cost you in the long run; there are many reasons why an inventory is important.

Who Conducts The Property Inventory?

A landlord, a letting agency, or an independent inventory clerk can all create an inventory. To be sure you’re working with a reliable company, look for an independent inventory company that has plenty of experience – just like Looksy Inventories. 

Both parties must sign the inventory report to certify that they agree with its contents, which is normally completed on the day of move-in. If the contents of the property are valuable, the report’s level of detail will reflect that. Photographic proof and written record are both acceptable.

Landlords should be mindful that if there is a disagreement, doing their own inventory might generate complications. The TDS would always prefer expert inventories over those done by the property owner.

Why Is An Inventory Important?

By taking an inventory, both parties can get a good idea of how the property is in its current state.

The property inventory will point out any areas that need to be fixed and say who is in charge of fixing them.

Having the document on hand will help tenants know exactly how to return the property to the landlord and give them an idea of how to take care of the home.

Inventory reports make it easy to tell the difference between damage and normal wear and tear.

Property inventories help both the landlord and the tenant protect their money.

When the tenancy is over, there are less likely to be problems if the inventory is done well.

But if there is a disagreement, having an inventory will help make sure the right decision is made.

Contact Looksy Inventories to find out more.

If you’re a landlord, you presumably already know this, but if you don’t, you should, since rental yield is crucial! It’s important for landlords to understand the concept of rental yield.

To put it another way, rental yield is a means to gauge the profitability of a property investment. Gross yield and net yield are equally significant, yet they measure different aspects of your business. To learn more, continue reading to see how you can increase your rental yield.

Review Rents Regularly

Here’s a simple way to help bring in more money from your rental yield. When the time is right, look at a property’s rental income and see if it can be raised to more closely match the going rate. Make sure you stick to your contracts, though, and think about whether you really want to raise the rent on a tenant who has been renting from you for many years and hasn’t caused you any trouble.

Review Your Outgoings

Let’s take a look at how much you spend on your property. Do you have your insurance automatically renewed, or is there a more affordable option out there? Is it expensive to hire a plumber, or can someone do the same job for less money?

Keep track of how much you spend and set reminders for when it’s time to look at other options. Treat being a landlord like a business, because it is.

Check Your Mortgage Renewal And Improve Your Rental Yield

You may have a buy-to-let mortgage on your home, but is it still the best one? There are a lot of new products on the market, so when the right time comes in your current mortgage, look around.

Be careful every time you switch. Keep an eye on the news for different products, and if it’s not the right time right away, write it down so you can come back to it when it is.

Invest Wisely

If you want to be a landlord, you should do your research. Think about where you want to spend your money and what kind of property you want to buy. Do you want a newer place that needs less work or an older place where more things could go wrong?

Don’t change your plan if it’s working. If you have a good rental yield because your home is new, keep that in mind when looking for another buy-to-let property.

Be A Good Landlord For Greater Rental Yield

If you have a great property and great tenants, you’re more likely to get a better rental yielf return (and yes, both can be achievable). But can you improve as a landlord?

Do you use high-quality components?

Do you deal with problems quickly?

Do you fix things right away?

If you’re a good landlord, you’re more likely to get good tenants and can charge them more rent.

You evaluate a house and a tenant, so why not evaluate yourself and see how you could be a better landlord? It’s good for business.

If you have the right tenant in your property, your rental yields are more likely to go up. If they take care of the house, your costs may go down. Obviously, if you want to get the most out of your property portfolio, you should think about hiring a lettings agent. You can get the most out of being a landlord if you hire a full-service property management company.

As a landlord, are you unsure whether you should use a letting agent? Depending on the circumstances, engaging with a letting estate agent can be an excellent method to save time, money, and worry. Here’s all you need to know about what a letting agency does and if you should engage with one to make your decision.

When You Use A Letting Agent What Do They Do?

Depending on the package you buy, a letting agent can do different things for you. You can give an agent some or all of the responsibilities for managing your property.

Most of the time, when you use a letting agent they can:

Advertise your property and help you find the right tenant.

Set up the lease: A letting agent can do everything to set up a tenancy, from getting references and running credit checks to getting deposits and writing up tenancy agreements.

Collect rent: A letting agent can collect rent from your tenants each month and follow up on any late payments according to the lease.

Manage questions: A letting agent can answer questions from tenants, deal with problems, and schedule maintenance or repair work.

Can You Manage The Property Yourself?

Think carefully about whether you want to manage your own property. It can take a lot of time, and you’ll need to know about all the latest legal changes to make sure you’re following the rules.

There are benefits to managing a property on your own, but only if you like being a “hands-on” landlord. Taking care of your own property can be a good idea if:

You want to keep costs down.

You have a lot of time to answer questions and deal with problems.

You know a lot of good tradesmen.

You are up to date on the newest laws.

You live close.

You like taking care of the business side of being a landlord.

Otherwise, it’s best to use a letting agent. 

What Are The Benefits If You Use A Letting Agent?

Not everyone can handle a rental on their own. Also, if you rent out more than one property, it can quickly turn into a full-time job.

Here are the top four reasons why you should use a letting agent instead of taking care of everything yourself.

Saves Time

Working with a letting agent will save you a lot of time because they handle tenant questions, rent collection, administrative tasks, and everything else in between.

You Can Be Hands-Off When You Use A Letting Agent

Working with a letting agent lets you be a hands-off landlord if you don’t like marketing your property, taking calls from tenants, and going to the property when problems arise. This is perfect if you live far from the rental property you own.

You Won’t Break The Law

One of the best reasons to use a letting agent is that they can make sure your property is up to code. A letting agent’s job is to keep up with the latest changes in the law so that you don’t have to. If you’re a new landlord or don’t have time to learn the rules, a letting agent can help you stay on the right side of the law.

Maintains Professional Connections

Things go wrong sometimes. Your tenants will need a tradesperson at some point, whether the boiler breaks or the kitchen sink leaks. Letting agents have professional connections with plumbers, electricians, and other tradespeople who may be needed in an emergency, so you don’t have to worry about finding the right person for the job.

Here’s a question: how important is it for landlords to use an agency? What do they get out of it?

If you’ve ever tried to manage your own properties, you know how stressful it can be. Having a good local letting agent take care of things like contracts, credit checks, inventories, and all the legal issues that come with renting is a big help.

In the last few years, the private lettings market has grown a lot. This makes it more important than ever for landlords to not only find the right local letting agent, but also know what services they can provide. And getting along well with your agent is important if you want to get the most for your money.

Why Do I Need A Local Letting Agent?

The goal of a good local letting agent should be to make renting a home as easy as possible so that both landlords and renters don’t have to worry about it.

As a self-managed landlord, it’s very important that you know about all the important laws, like the recently passed Tenant Fee Ban, deposit protection, and the Immigration Act. You should also know about health and safety issues, like making sure your gas certificates and electrical checks are up to date. If you don’t follow a law, you could be fined or even put in jail.

By hiring a letting agent to take care of your property for you, you protect yourself, your property, and your reputation. You can also rest easy knowing that they worked hard to find the right tenant and that the rent is paid on time.

And from the tenants’ point of view, they know that they are protected during their tenancy, that they know what their rights are, and that they have someone to talk to if something goes wrong. So you won’t have to answer the phone late at night when your tenant has a problem.

What Should You Look For In A Letting Agent?

You should know from the beginning what you want from your agent. Most agents offer a number of services for landlords, such as finding tenants and taking care of everything. Be aware that if you don’t pay an agent to fully manage your property, you as the landlord will be in charge of making all the necessary paperwork, like inventories and contracts, and making sure you follow all the laws and rules. If you don’t have time to learn all of the laws and rules about letting a property or don’t want the stress or responsibility of setting up regular checks for things like gas safety, electrical checks, PAT testing for appliances, etc., you might want to look for a service that will take care of all of that for you.

A fully managed service also means that the agent will take care of all the day-to-day issues, like general maintenance, complaints, and rent collection. So, if something goes wrong, your local letting agent will be the person your tenants will talk to and will be able to fix any problems on your behalf.

Once you know what level of service you want, you can start looking into letting agents in your area. If you know other landlords in the area, ask them for recommendations. You can also look for reviews online. Compare what they offer and how much they charge, and make sure they have the right memberships and money-back guarantees.

A rental property may become unoccupied at times. Whether it’s for a short period between leases or for a longer period, such as planned repairs that are simpler to complete without a tenant in place, the negative is that a vacant property is far more exposed. If there are water leaks or weather damage, it may go unseen until you visit the property again. If it’s clear that no one lives there, it might be targeted by vandals or squatters, both of which could require time and money to settle.

Here are some of our best rental property management tips for a vacant property.

If You Have A Vacant Property, Let Your Insurer Know

Many landlord insurance policies only cover a vacant property for up to 30 days, so you should talk to your insurance company as soon as you know your rental will be empty. If you don’t, and something happens that makes you need to file a claim, your policy could be cancelled.

Your insurance company will be able to tell you what you need to do to keep your policy valid. For example, they may tell you to turn off the gas and keep the heat on low during the colder months to prevent the pipes from freezing and keep the property free of mould. They can also tell you when you will need to switch to “unoccupied property insurance.” This may cost a little more, but if it gives you peace of mind that you’re safe, it’s well worth it.

Make Regular Security Checks

Your landlord insurance provider will probably want you to check on the property often while it’s empty, usually once a week, to make sure it’s still safe and in good shape.

So, when you get there, make sure all the doors and windows are locked and there are no signs that someone tried to get in. Check each room to make sure there’s no damp from the outside or a leak inside, and open the windows for a while to let the air circulate so the house doesn’t get stuffy (remembering to close them again properly before you leave).

If you can, put a couple of lamps inside on timers so they turn on and off at different times. If you don’t already have one, it’s also a good idea to install an outside motion sensor light on the exterior of your vacant property. Burglars and vandals don’t like it when it’s bright!

Make Sure The Vacant Property Is Clean

If the property is empty because it is between tenants, you might want to have a deep clean done by a professional to get rid of any surface mould, make sure all your fixtures shine, and give the property a new look and feel for viewings.

When tenants leave trash behind, it’s important to get rid of it as soon as possible so it doesn’t attract illegal dumpers or become a fire hazard.

When it comes to presenting their property to the market, landlords who opt to lease their housing furnished must make some significant considerations. How can you invest in trendy decor and appealing furnishings that will attract great tenants without eroding your profit margin? Let’s investigate more.

What’s The Target Market?

Tenants looking for furnished apartments are most usually young individuals or students, or corporate professionals looking for short-term rentals. These are persons who don’t (yet) have any household items that need to be accommodated, or who are searching for temporary housing away from their primary residence.

If you furnish your rental property, you will be needed to supply basic items such as beds and clothing storage, a couch or other living room furniture, a dining table and chairs, and window decorations and floor coverings throughout the property. A hob/oven and fridge are regarded as basic in the kitchen, and a washing machine is extremely desired.

Some candidates may desire to bring an item or two with them. That might be an acceptable compromise if you can be adaptable to the wishes of what seems to be a high-quality renter. However, keep in mind that you may pay extra fees for storing unnecessary furniture when your furnish your rental property.

Balancing Style And Practicality

The first rule when you furnish a rental property is to leave your own taste at the door. This is not the time to experiment with the current colour trends, nor is it the place for statement wallpaper, much alone superfluous trinkets. Choose a neutral colour palette that will appeal to a wide range of preferences, and create a smart, unified design with matching furniture – a basic style with clean lines will suit you well.

Be very cautious while saving money by acquiring mismatched second-hand things for your rental apartment. Unless you have a keen eye for interior design, old furniture is likely to disappoint you and is nearly always a waste of money.

When it comes to furniture and furnishings for rental houses, rule number two is that practicality rules supreme. Divan beds are more durable than bed frames, and if you can obtain one with storage below, that’s even better – you may need less cabinet space elsewhere. Mattresses have a lifetime of around 7 years under typical household settings, however some tenants may request a new one (or bring their own) before moving in.

Your upholstery textiles and soft furnishings must be durable, simple to clean, last a long time, and blend in. Avoid fragile textiles and bright colours that tend to stain. Many sofa and armchair collections feature detachable, washable covers that don’t need professional upholstery cleaning, which may save you a lot of money. Remember that all furniture and furnishings must be labelled with fire safety information.

Carpeting your rental property can be a costly endeavour, therefore it is critical to maximise your investment. Select a carpet that guarantees strength and longevity, can tolerate strong household usage, is stain-resistant, and is simple to maintain. Neutral mid-tones are the most effective in ‘hiding dirt.’ Nylon and polypropylene carpets are less expensive and many are bleach cleanable, but wool carpets are more expensive to install and maintain.

Maintain your rooms clutter-free, and provide crucial pieces of furniture that are in excellent condition and coordinate. Fitted shelves and cabinets may be more expensive at first, but they have a longer lifetime and are much simpler to maintain than freestanding equivalents. Remember that every item will need to be cleaned, maintained, and eventually replaced. The more goods there are, the more expensive it is to maintain them.

Don’t Take Your Eye Off The Budget

The expense of outfitting a rental apartment can quickly add up. However, if you cut too many corners, the property’s desirability will suffer, resulting in less demand and lower monthly rent. It is preferable to save money by eliminating superfluous accessories and taking advantage of special deals, interest-free financing, or cost-effective landlord furniture bundles.

Compare the cost of equipping your rental home to the recurring cleaning, repair, maintenance, and replacement costs that you will undoubtedly pay during and between leases. You should also account for your (or your agent’s) time in dealing with furnishing-related callouts. If the stove suddenly fails or the curtain rail falls from the wall, you will not only be the first to know, but you will also be expected to address the issue quickly.

The Power Of The Inventory When You Furnish Your Rental Property

Finally, make it a top priority to do a thorough inventory of the property’s items before a new tenant comes in and again before the same renter goes out. 

Depending on the duration of the rental, you may opt to visit the property more regularly – say, every three months – to identify and address any evident symptoms of damage as soon as feasible.

The inventory, also known as a Schedule of Condition, is a complete written list that covers all of the property’s contents and their condition, and can include images and videos — here’s one example. This agreement serves as the foundation for any damages for which you may be reimbursed. If any damages occur during the lease, estimates for repair or replacement, as well as information of any deductions from the tenant’s deposit, should be communicated to the tenant.

Whatever your degree of investment in equipping your rental flat, the inventory is a critical tool for resolving any fights or disputes with your tenant over property damage, safeguarding your maintenance and repair budget, and helping to maximise your profit margin.

What can a landlord do about smoking in a rented property? It’s a difficult thing to have to deal with. On one hand, it’s no secret to landlords that daily smoking is hazardous for a property’s air quality and may cause significant damage to the interior. However, a landlord’s lenient attitude toward smoking will open the door to the greatest number of potential renters, because there are still many smokers.

How Many Smokers Are There?

When it comes to smoking in a rental property, according to a recent poll, just seven percent of landlords agree to allow tenants to smoke during the tenancy, despite the fact that more than one-fifth of the population are smokers.  So, are landlords passing on a golden opportunity? Before making any hasty choices, landlords of Houses in Multiple Occupation should examine the following research, which discovered that smoking renters are not very popular with their flatmates:

Barely 19 percent of other renters indicated they would be pleased to live with smokers, 37 percent of flatmates would share housing with a smoker if they would smoke outside and 44 percent of flatmates usually would not want to share with someone who enjoyed smoking in a rented property.

Another recent poll, this one conducted by Easyroomate, found that 38 percent of private landlords would evict tenants who were detected smoking within a rented property.

Do Landlords Have A Choice If Tenants Are Smoking In A Rented Property?

In these days of the Human Rights Act, do landlords have any right to ban their tenants from smoking in their rental property. The quick answer is… yes.

It is completely feasible to include a brief phrase to ban renters from smoking in a rented property. We recommend something like this:

3.7.13 Not to smoke or let any guest or visitor to smoke tobacco or any other substance in the property, unless the landlord has provided written approval.

How To Enforce A Smoking Ban

The enforcement of this provision, on the other hand, is a concern. If the landlord is confident that a tenant was smoking without authorization, they must first acquire evidence to prove it. Simply stating that the room smelled “a little smokey” is unlikely to suffice in a court.  To evict a tenant on these grounds, a landlord must use one of the fault-based grounds for possession, such as Ground 12: The tenant has violated one or more of the provisions of the rental agreement, excluding the responsibility to pay rent. However, this is one of the reasons for possession where the court has discretion in granting a landlord a possession order.

This implies that no two cases will be the same, but more importantly, there is little chance that a ‘liberal minded’ court would toss a tenant out on the streets for having the ‘odd smoke’ in their own house. As a result, there is little prospect of a landlord obtaining possession. This means, the odds of a landlord winning while a tenant continues to pay rent are small. Is there anything more a landlord could do if a tenant keeps smoking in a rented property?

Other Approaches To Prohibit Smoking In A Rented Property

One technique to cope with any harm produced by a smoking renter is to request a premium rate. It doesn’t have to be much, maybe five percent, just enough to pay the price of redecorating. As we indicated earlier, 1 in 5 individuals still smoke, therefore being tolerant may provide a landlord an opportunity in the market, providing you don’t mind redecorating on a recurring basis.

The alternative method may be to require a larger deposit from a smoker in the expectation that if damage occurs, the landlord would be successful in withholding a portion of the renters deposit to pay the damage caused by smoking in a rented property. However, we’re sceptical that a landlord could persuade a TDS adjudicator that the damage (which, let’s face it, frequently smells worse than it appears) is a problem even where you’ve gone to the time of meticulously creating a property inventory.

The long and short of smoking renters is that although the law seems to be on the landlords’ side, enforcability is a far more difficult and unpredictable procedure. Unless landlords have a trick up their sleeves, the best solution seems to be to attempt to pick an honest non-smoking renter in the first place, or to just accept the fact that there will be smoking in a rented property.