Becoming a Landlord
Landlords really do have the upper hand in our current marketplace. We have a fairly fragile economy, ever-growing population and at the same time, we have a shortage of affordable housing. With all this in mind, Landlords can really take advantage of the time in which we are currently living.
Become a Landlord
Becoming a Landlord is not quite as simple as finding a tenant and then letting your property to that person. There are a few things that need to be carried out first.
Ensure safety of gas supply
You, as the Landlord, have to ensure that it is
gas safe. A
Gas Safe Engineer has to check the property and provide a satisfactory
Gas Safety Certificate. You then have to organise the annual check up to ensure it stays this way.
Energy Performance Certificate (EPC)
This is a legal requirement - you have to provide the tenants with an EPC - this will verify that the property is energy efficient. These cost around £100 and they can be obtained through
www.uk.epc.co.uk - failure could lead to a fine.
Fire Protection
Efficient fire alarms have to be fitted and these have to be checked regularly.
Shared facility license
If you plan to let the house to more than one household then it may be classed as a house of multiple occupation (HMO). You may need to register with your local authority and obtain a license. Failing this could lead to a rather large fine.
Protect the deposit
It is very important to have the deposit secured, which stands to reason the fines issued if not placed in a Government-approved protection scheme.
Tax Declaration
You must declare any income from tenants as it may well be taxable.
Obtain Landlords insurance
This can be complicated - you need to ensure you purchase the right policy as it could mean that you are not 100% protected.
If the accommodation is furnished in anyway, then the Landlords contents insurance would provide cover for these items if they were to be damaged.
Buildings cover would provide cover for things that will happen to the property, incidents such as burst pipes, fallen roof or broken window. The Landlords insurance will also cover unfortunate events such as floods, fire or theft.
Contructaquote.com is an experienced panel of commercial advisors who can tailor policies to meet your needs.
Now you need to find your tenant
You will need a good tenant - reliable, trustworthy and responsible.
How to find one
- References are a must - employers and previous landlords
- Arrange a meeting - Meet the potentials before offering the property - see the kind of person they are
- Credit check - if permission is granted, perform a credit check to check how responsible they are with their finances
Protect yourself with a tenancy agreement
This is a contract between the tenant and yourself, as a Landlord. It gives the tenant the right to occupy the accommodation and you the right to receive rent for letting the accommodation.
These can be obtained online or via a solicitor.
Be sure to include:
- The address of the property
- The landlords and tenants name
- Date the tenancy will begin
- Duration of the tenancy
- Tenants and Landlords responsibilities - maintenance, repairs etc
- Deposits and fees payable
- Cost of rent
- The length of notice required if the contract need to be cut short.
