Here we’ll take a look at the extensive list of items to have in mind when preparing to set up a property rental business.
Image Credit
Ready to Do Business?
Becoming a landlord shouldn’t be considered as a part-time hobby, as it is most often a full-time job. Be prepared to dedicate time, energy and money to it. Rental property continues to be a good investment, and as Investopedia states, single-family homes are perhaps the best choice.
Location Is Key
Make sure you do some research into the area of your possible rental property. Good properties in great locations will attract tenants willing to spend more money on rent.
Local Knowledge
Talk to your council and local estate agents to learn about the local requirements of becoming a landlord. Talk to a lawyer to understand the laws you need to abide by and get assistance in setting up your tenancy agreement.
Keep Records
When initially renting out your property make a list of all the items within the house. Property inventory software, such as that from https://inventorybase.co.uk/, is really useful for keeping online records.
Ready to Maintain
When things go wrong at the property, make sure you have the contact details of your maintenance team to hand. Keep your tenants satisfied by getting leaks and breakdowns fixed as quickly as possible.
Invest in the Business
Remember to treat this as a business. That means putting some of your profit aside to make sure that you have enough to cover any upgrades or work that needs doing to the property in order to maintain a good rental value.
Screen Tenants
It’s advisable to screen tenants before offering a tenancy agreement. You at least want to make sure that they will be able to cover the rent and bills each month. Credit and background checks can be made, and usually an estate agent or property management company will be able to assist you with these.
Dealing with Problems
If you are unfortunate enough to run into problems with tenants, such as them not paying rent or making changes to the property without prior consent, then you need to be prepared. Double-check that any situations are covered in the tenancy agreement and that you have processes detailed of what will happen if the agreement is broken.
