This isn't what I normally cover in my blog but, as I've been approached by so many people in and around Teddington over the last few weeks about it, I thought it worth sharing, The people I've been speaking to are really interested in becoming landlords and buying their first buy to let property but have held back because of a few common concerns which are actually much easier to solve than you would think.
I've therefore picked the top five concerns that I've heard the most often recently and addressed those below so that, hopefully, those of you that haven't taken the plunge yet into property investment, but are keen to, can see it's not actually that scary.......!
Potential problem 1:
What if I fail to find a tenant?
Simple solution 1:
Empty properties and extensive periods of void are among the biggest worries listed by new landlords in Teddington. However, in the currently buoyant rental climate, a well-presented property that is marketed correctly (and at the right price) shouldn't be empty for very long...
I always ensure that each property is marketed correctly on the property portals, with detailed descriptions and internal photos. I also advise landlords to give themselves adequate time to find a tenant by advertising the property at least 4-6 weeks before they want it let as tenants normally look about a month before they need to move in.
It is vitally important to ensure that the price is right too. A good agent will give you a realistic valuation, but it may also be worth doing your own research of what is currently available to let in the local area, via the property portals. Also think carefully about whether the property is presented well. Don’t put off doing jobs such as cleaning and decorating until you know a tenant wants the property – it may be making the property look neglected. Tenants like to see that the property will be in a good condition and will be well-maintained during their tenancy.
Finding a tenant should never really be an issue. If you rely on a proactive agent with excellent software that ensures all applicants are aware of any new properties – and the property is priced correctly and interest is monitored – there should not be any issue in finding a tenant.
Potential problem 2:
What if a tenant damages my property?
Simple solution 2:
Extensive malicious damage to a property by a tenant is very rare but, along with minor and major accidental damage, it can occur... so it is always advisable to be prepared.
It is worth taking out good landlord insurance which can cover damage caused by the tenants, whether accidental or malicious. Taking a deposit from the tenant is essential – but claiming deductions from the deposit can prove difficult if you do not have a good quality inventory and statement of condition signed by the tenant at the start of the tenancy.
A good agent will have taken a thorough inventory with supporting photos. I always ensure that I visit the property after one month, then every three months after that, providing feedback both to the landlord and tenant. This generally minimises the risk and gives the tenant a benchmark as to our expectations.
Adequate insurance to cover any issues is vital too.
Potential problem 3:
I don’t know anything about the legal side of lettings
Simple solution 3:
If you’re unsure about the legalities involved with letting your property, there are many people who can help. A good professional lettings specialist will always be happy to offer advice and there are many professional bodies that can provide support and information too.
During my appraisal I would detail all the landlord’s responsibilities so that they know what they do and don't have to do in order to be compliant. I would then regularly update my landlords on any changes to legislation as and when they happen so they don't have to worry about being unaware of anything new that could catch them out.
Potential problem 4:
What if I need to evict a tenant?
Simple solution 4:
There are many reasons why a landlord may need to start eviction proceedings, all covered by the Housing Act. A landlord’s first port of call may be to discuss it with their managing agent in order to ascertain the reasons, and to pinpoint the correct notice and relevant legislation.
Evicting a tenant can be a difficult and long process so having a reputable agent help you can make it easier. There are several ways to evict a tenant and this depends on the reasons why you want to evict them – some landlords may just want their property back or the tenant may have fallen into arrears, which is one of the most common reasons.
A good lettings agent can guide a landlord through the eviction process by giving them step-by-step advice on the legal process, which must be followed and adhered to in the correct manner. If it isn't, there can be many problems, such as non-compliance, and the courts can throw out the case.
Potential problem 5:
What if I haven’t got time to manage a rental property?
Simple solution 5:
Easy! Get a good property management agency to manage it for you...
A lot of landlords are busy professional people with little time to spare. Many want more time with their families and find it increasingly difficult to juggle their lives, jobs and rental property. Viewings and rent collection can cause the biggest problems. A private landlord can use up lots of time showing prospective tenants around their property and during the many visits to the property once it is tenanted. And, of course, this isn't ideal if they don’t live locally to the property.
I make sure I credit check all tenants, gather background information and also qualify the tenant through references. Once the property is occupied I will then take on the full-management of the tenancy if the landlord has opted for this. Instructing a good property management agent can help a landlord cut down time... without cutting corners.
I hope that helps and, as always, if you want any advice on the Teddington and surrounding areas property market then drop me an email or give me a call. I'd love to hear from you.
Now here's my piccy of the day. Sorry, I don't know why I find it funny!
Rebecca Smith
