Introduction: Becoming a Landlord
Becoming a Landlord
Being a buy to let landlord means you are a property investor. A property investor is someone who lives by the fact they will be substantially better off later on in life and can also pass on their heritage to their children. They are ‘asset rich’ rather than ‘cash rich.’ So how do landlords start their journey when deciding to rent out property?
Welcome to Connect UK’s ‘Landlord Academy’ – here to answer all your property questions.
Step 1: Notify all parties
Any rental property must be disclosed to your lender. You are legally obligated to notify your mortgage company and they will need to authorise a ‘consent to let’ which may incur a fee.
Step 2: Insurances
If you have a mortgage on the property, it is likely your lender will require you to take out landlord insurance before taking on any tenants. It is always a legal requirement to take out a specific insurance to suit your circumstances.
Step 3: Property presentation
Is the property clean? Are there any outstanding repairs? Is the décor neutral? Think about a house you would like to rent, by ensuring the property meets your own expectations.
Step 4: Property management
Depending on your experience and time, you could either manage the property yourself or have it managed by a property management. Generally, property management service costs around 10% per calendar month of the rents received.
Step 4: Rental expectations
By looking at local comparable and talking to local agents you can determine a market rental price for your property. You’ll soon know if you have priced your property correctly, in the first week by the number of enquiries you will receive. Remember, market dependant, you can increase tenants rent annually.
By taking these five steps you can ensure you are landlord ready.