Our Landlord Guide
Private landlords and lettings are the new normal in the UK. In the last 20 years the sector has doubled in size, and this is predicted to continue.
With the “Generation rent” rapidly growing, if you have been considering becoming a landlord, now is the time. More than 50% of 20-29-year olds are predicted to be renting.
Our guide is designed to give you the insight into the technical side of things that you are usually not told. It will walk you through the entire process, start to finish, the same way we will once we begin managing your properties.
Why should I become a landlord?
When considering selling vs letting your property, there are a few things worth considering. Due to an ever-expanding market, rental prices have been on a steady rise in the UK.
It is a great consistent revenue stream and is usually consistent and reliable. There are new waves of renting schemes such as Air BnB, which have reduced the supply available for the increasing short-term renting demand. Becoming a landlord provides a long-term income source which will last a lifetime.
INSURANCE
Life is life, and sometimes regardless of how many background checks and risk assessments we do, things happen.
A landlord insurance policy is the best fallback guy you can have, with protection against ie, flood, and damage. It can also cover things like liability cover against courts and alternative accommodation cover for your tenants in case of emergency.
LEGAL COMPLIANCE
As a landlord, you do end up taking on some responsibilities, and there are some things which require legal compliance.
CERTIFICATES
GAS SAFETY – A yearly check of all gas appliance within the home. It I essential to complete these prior to the active one expiring. They are also conducted when new appliances are added into the property to ensure it’s always an updated version.
ELECTRICAL SAFETY – These certificates can be either 3 or 5 years long. Again, there should always be an active certificate, and when new appliances are added in, an updated version must be completed.
EPC – Energy Performance Certificates last for 10 years, and again there must always be a valid certificate.
FIRE SAFETY
Should you be providing the properties furnished, all furnishings and upholstered furniture must meet fire resistance requirements. Any furniture manufactured after March 1989 will meet the requirements and are usually marked with a label to show this is the case.
Both the Housing Act 2004 and the Regulatory Reform (Fire Safety) Order 2005 cover legalities relating to fire safety. There is a common law duty to landlords to ensure the building is compliant to regulations and is safe.
NEW TENANTS / MARKETING
It is all well and good having a property available, but how do you find the right tenants? These days online marketing is the way forward. With websites like gumtree, Rightmove, Zoopla, Roomshare etc, it can be overwhelming trying to figure out how to market your stock. At Neon, we use professional photography when displaying your property to ensure maximum potential is displayed through the screen, on whatever site you use. It’s always good to prop up the home prior to this, ensuring you leave it as open and minimalistic as you can to allow space for people to imagine themselves turning the space into their home.
Once you know where and how you will be advertising, it is good to filter down what type of tenants you are looking for and target towards that audience. For Example, would you like single, couples or families? Will pet owners or smokers be permitted? If you have good transport links locally, will this be a great fit for young, single working professionals?
A key part to finding the right tenants is to ensure you have a thorough reference check completed. References are done to previous landlords and current employers. This allows insight into the tenant’s affordability; spending habits and allows you to know how they are within the home. At Neon, we check through an external party to ensure a full check is completed. These are done as quickly as they can be and have ensured that the tenants placed are the most suited to your property. This means having no delayed rent payments, surprise pets or smelly smokers.
TENANCY AGREEMENTS
It is always imperative to have a valid tenancy agreement in place with your tenants, to ensure both parties remain protected. The agreements usually lay out sets of ground rules specific to each property and landlord, but mainly is used to outline the legal requirements of each party, from repairs and maintenance to rent and deposit protection. Usually, these agreements are set to 12 months, however it is not unusual to adjust length of contracts and their addendums.
SETTING FEES AND RENT
Valuations are not only used for sales but are key to lettings too. It is always good to value your property to ensure you’re charging appropriately to your areas pricing to avoid having your property left on the market, or worse, it being under-priced and you losing out on profits. It is always good to research the recent lets in your area and assess how much properties are eventually let for, as opposed to checking what they go up for. Just make sure you are being specific with your investigation, down to amount of bedroom, with or without driveways/parking etc.
EVICTION
Having to evict a tenant, due to lack of funds or due to lack of maintenance, is never easy.
Sometimes, it can reach levels of frustration that temp us to take matters into our own hands, however it is essential to follow the correct procedure, especially in the current climate.
The current eviction ban means eviction hearings are on hold, and once resumed, there is a full process to follow to legally evict a poor tenant. For guidance on this, contact us or visit the Government website for more information.
SUPPORT FOR LANDLORDS
There is plenty of help there to support you through becoming and being a landlord. There are landlord associations, which charge an initial joining fee. They have their own professional criteria’s which you must meet and joining such groups can help to build your reputation and provides credibility to yourself as a landlord.
The biggest help and support you will find will likely be with letting agents, such as ourselves. Depending on how you choose to involve them, it can mean they are fully managing your property, its’ needs, and its’ tenants. At NEON, we offer different packages to suit the level of support and guidance different landlords/properties need.
Why let via Neon Estates?
- At Neon, we have a team that comes with knowledge, focus and experience. Our team has experience in Ilford, Chigwell, Hainault, Dagenham, Rainham, and the list goes on.
- We have a Rent Guarantee Scheme available for further landlord security.
- We conduct regular rental inspections at your property
- Accompanied viewings and meetings with honest and constructive feedback.
- Full referencing and screening for all tenants and potential tenants.
UKALA Client Money Protection
We are a member of the UKALA Client Money Protection Scheme.
