Collaborative Post
As rents are on the rise and the cost of living is going up, it’s fair to say that cultural sentiment is seemingly quite vindictive against landlords. But the truth is that not everyone wants to or can own a property at least for the time being, and a great landlord can actually be quite a convenient and reliable partner, helping people get the best out of their accommodation needs.
Another myth is that the life of a landlord is easy. Of course, if you have multiple properties managed by people you’ve hired to tend to your needs, sitting at the top of the totem pole is certainly worthwhile. Yet for most people, perhaps serving as a landlord for one or a few properties, will remain a relatively intensive amount of work to keep on top of.
For this reason, there are a few worthwhile questions to ask yourself before getting in this enterprise. In other words, it’s essential to know what you’re getting into, to develop a coherent plan, and to have a good idea of how you’ll structure your affairs and how to prevent possible issues taking place. In this post, we hope to discuss six of these questions and why they’re so relevant. Also when considering becoming a landlord, it’s important to thoroughly screen potential tenants to ensure they are reliable and responsible. Using an online tenant screening from rental platforms can help you make informed decisions about who you allow renting your property.
How much of the maintenance work are you prepared to do?
You don’t have to be an all-round contractor ready to attend to every electrical issue, every plumbing problem, and every smashed window yourself in order to be a good landlord. But you do have to take a healthy approach in the maintenance work, and to some degree, managing these skills can help you save money on contractors.
Perhaps you have no problem rolling your sleeves up, removing mould, and painting over the affected walls should a relatively naive tenant fail to ventilate their apartment properly, leading to damp. Oftentimes, curating a healthy relationship with local contractors that are familiar with your property (or properties) is key. It’s also important to communicate with a 24-hour electrician or plumbing service should a spring leak in the middle of the night, or should your tenants go without power.
Of course, attending to maintenance needs is non-negotiable. Cultivating a reputation as a landlord willing and able to attend to these measures or co-ordinate the response is, unfortunately, a rare thing, and will be highly valued.
How will you fund the household?
There are many ways to become a property owner – which is why some people become accidental landlords and try to make the best of it. That might sound like quite a privileged statement to make, and of course, those who own property are not necessarily in an unenviable position.
However, for some, learning how to get a loan for a rental property, or selling off other properties so that one can be made up and rented is a real business investment. Your funding can also determine the prices you set for the area, and how you structure certain payments like all-inclusive bills or what provisions you give, like including internet or not. Depending on the type of building you invest in, you may or may not be on the hook for local authority housing tax, or this may fall to your tenants. In the United Kingdom, for instance, renting several apartments within a singular building with individual contracts will define the space as a ‘house of multiple occupancy (HMO)’ meaning that the landlord is responsible for this cost.
In addition to this, letting agent costs (companies that can help chase up rent, advertise your property, and take care of communications), will eat into your profits. Or, you could go private and solo with your own small business. Planning the finances is, of course, the most essential part of the plan.
Who will you rent to, and how will you vet them?
Of course, discrimination based on age (within certain limitations), gender, sexual identity, race, disability and religion is illegal and would be morally repugnant regardless. However, landlords can discriminate in small ways, without prejudice.
For instance, perhaps you’re not interested in renting to those who may need welfare or housing benefit to fund their rental property, which is acceptable in many locations. The same may go for pets, you can choose to allow or disallow them. Maybe you’re not interested in those who only wish for a small six-month contract before moving on, or you’d rather not rent to students because they tend to throw large parties without concern for the property, and you’d prefer to host quieter professionals.
More importantly than any of these qualifiers, however, is how you’ll make sure the person who wishes to rent can be trusted. Background checks, vetting checks, and even credit checks are important. In some cases, you may ask for prove of employment or referrals from previous landlords, but that latter option is not necessary.
On top of this, just having a nice conversation with the rental candidate in question can help you see how they are. A simple, pleasant conversation that shows they can co-operate is enough. Remember that even the most affable person can cause issues though, and those you may be quick to judge could be valued, quiet, and appreciated tenants for years and years. So try to challenge your own biases.
What’s my end of the contract?
It’s easy to think about how and why tenants should conform to their side of the contract, of course this is obvious, but you’re also under a clause of fair renting necessity. For example, your end of the contract might include placing their security deposit in a protected scheme so that it can only be accessed at the end of the tenancy or in extenuating circumstances.
Additionally, ‘fair and quiet enjoyment of the property’ may mean making certain that disputes between tenants are managed, that you stop tenants who may cause problems with loud noise or certain ‘smells,’ and that you give at least 24 hours of notice before visiting the property to show potential new tenants around or to check up on maintenance needs.
With this advice, you’re certain to be in the right headspace to serve as a fantastic landlord, and to develop relationships that may last years.