If you are thinking of buying a property to let to tenants, there are several points to be aware of before you start.
Being a landlord comes with certain risks and responsibilities. A little preparation and understanding can help you avoid difficulties down the line.
Consider what insurance you want
As well as buildings and contents insurance for landlords, which will include cover for damage caused by your tenants, you are also advised to put liability insurance in place. This is intended to cover any injury or harm that the tenant sustains because of the condition of the property. For example, if they are hurt tripping over an uneven paving stone or floorboard or a roof tile falls on them.
In addition, you can consider insuring against other issues that could arise such as non-payment of rent or the cost of providing alternative accommodation, should something happen that means the tenant has to move out of the property.
It is also possible to pay for legal expenses insurance, which could cover your legal costs in the event that you have to deal with a legal dispute with your tenant.
Vet your potential tenants thoroughly
All tenants must be checked to make sure that they have the right to legally rent property in the UK. You cannot just check those you believe to be overseas citizens; by law you must check everyone. You will need to check everyone who will be a tenant at the property, even if they will not be named on the tenancy agreement. Renting to someone who does not have the right to be in the UK can result in a fine or imprisonment for up to three years.
You are also advised to check the following:
- Does the proposed tenant have a criminal record? Certain convictions could invalidate your buildings insurance
- Credit check, to include previous rent payments
- References
Be prepared to deal with property problems as soon as they arise
Building a good relationship with tenants is important for a sound long-term tenancy. This means that you need to be prepared to respond quickly to problems such as plumbing or electrical issues or leaks in the roof. Make enquiries in advance so that you have a good quality and reliable plumber and electrician lined up, should it be necessary.
You are advised not to economise when it comes to having work done. Keeping your tenants happy will mean they are less likely to move on and if you need to raise the rent in the future, they will be more likely to pay this if they feel well looked after.
Understand what safety regulations you will need to comply with
Fire safety – you will need smoke alarms at the property and if solid fuel is burned or stored there, you will also need a carbon monoxide alarm.
Electrical safety – electrical fittings at the property should be PAT tested and you will need an electrical safety certificate. The property will need an electrical safety inspection at least every five years.
Gas safety – you will need to have an annual gas safety check carried out.
Contact us
If you would like to speak to one of our expert property lawyers, ring us on 0333 3055 189 or email us at info@lpropertylawyers.co.uk
