First time landlord?

There are a number of things you need to consider before embarking on the path to being a landlord.  The property obviously is key to the success however you need to be financially and mentally prepared for what this entails.

By 'financially', we mean the fact that you need to budget for lots of hidden costs over and above the property purchase and to be able to absorb mortgage payments for the periods when your property may be vacant. Below is a list of costs that you need to consider (its not exhaustive but it will help you):-

  • Property purchase (solicitors, surveyors, local searches etc.)
  • Agency fees - initial fee and then on-going management fees may apply
  • Insurance
  • VAT - often quotes do not include this, so always bear it in mind!
  • Legislative commitments - EPC, Gas safety certs, electricity checks, fire alarms
  • Void periods between tenancies
  • Repairs/maintenance/property improvement
  • Redecoration and cleaning

By 'mentally, we mean the fact that somebody else will be living in your property.  Whether you have been living in it and plan to return at some stage, or this is purely an investment property, will inevitably influence your emotional attachments to the place. This may mean that you want to be heavily involved with finding a tenant to make sure you are happy, or you may simply hand over the keys and take a back seat.

You also have to accept that people living in the property will lead to wear and tear and the property will gradually deteriorate, over time and turnover of tenants.  It is your responsibility to make sure the property is maintained and that the basic services are available to the tenants at all times (e.g. heating, hot water, free flowing drains, etc.).

One of the other key things you need to consider at this stage is how involved you want to be with the property.  This will determine what service level you require from a letting agent.

If you live close to the property and wish to maintain a large involvement dedicating time and energy to it then the 'Let-Only' service is likely to be relevant to you. This will leave you with an amount of paperwork and the key contact for the tenants should anything go wrong. It is not recommended that you leave the management to a friend or relative. If you want a slightly less hands on approach , but again live nearby then 'Rent Processing' could be the answer.

Alternatively if you simply want to hand over the keys and have peace of mind that somebody else will manage the property on your behalf then the 'Fully Managed' service should suit. You will be kept up-to-date with regular feedback from inspections and at key stages of the tenancy (i.e renewal time).

More advice

2 bed v 3 bed?

Furnished v unfurnished?

Fire alarms regulations...gas safety regulations...furniture legislation?

It's often easier to chat through exactly what is required as opposed to reading it on a website - so for all those unanswered questions that you have about your property - please call us and we can offer you guidance.  Call Stamford Homes on 01780 444835.

 

 

01780 444835

email: info@stamfordhomes.co.uk

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