Landlords - Top Ten Tips
Mary-Anne Bowring 14/02/2024
227
Keeping Proper Records: The Key to Hassle-Free Letting
Bankers Arbuthnot Latham recently shared their top tips for letting property, and the first rule is not to skimp on record-keeping. Keeping accurate records of income and outgoings is crucial for managing administration, ensuring compliance, and protecting yourself in case of tenant disputes.
Well-organized financial records can save time, money, and legal trouble in the long run.
Financial Planning: Preparing for Vacancies and Unexpected Costs
Rental properties typically remain vacant for around one month per year. Good landlords prepare for this by keeping at least three months' rent in reserve to cover unforeseen gaps in income.
Beyond mortgage payments, landlords must also budget for additional costs, such as insurance, maintenance, and compliance with regulations. Failing to account for these expenses can lead to financial strain.
Deposit Handling: Avoiding Costly Mistakes
Handling tenant deposits correctly and legally is a must. Landlords who fail to follow deposit protection rules risk hefty fines. To protect both parties, landlords should:
- Conduct a detailed inspection before handover
- Create an inventory with photographs
- Provide a copy to the tenant before move-in
More details on deposit legislation can be found on GOV.UK.
The Importance of Regular Property Inspections
Carrying out regular inspections is essential to ensure the property is being maintained properly. It also helps landlords build relationships with tenants and gain insights into their future plans.
Proactive inspections can help landlords identify potential problems early, saving time and money in the long term.
Making Smart Investment Choices: Location, Yields, and Taxes
Before investing in rental property, landlords should take professional tax advice to understand allowances and liabilities.
Additionally, investors must:
- Calculate rental yields to determine profitability
- Research the local area for demand and rental trends
- Carefully vet agents and tenants to avoid unnecessary risks
- Choose the right insurance for the property, including coverage for void periods and tenant-related damages
How PlanetRent Simplifies the Letting Process
We think this is all great advice for landlords! However, at PlanetRent, we take things a step further by simplifying the rental process.
Our automated lettings platform helps landlords:
- Manage compliance easily
- Generate key documents automatically
- Streamline deposits, inventories, and record-keeping
- List properties on Zoopla and Rightmove for marketing
With no subscription required, there's nothing to lose. Try PlanetRent today and take the hassle out of letting!
info@planetrent.co.uk
0208 0599 550 (for sales)
Under Offer: This term applies to a property where the landlord is considering an offer but remains on the market. It implies that further offers may still be considered until the landlord formally accepts or declines the current offer.
Let Agreed: This term indicates that a landlord has provisionally agreed to enter into a rental agreement with a prospective tenant, pending additional checks and referencing. It doesn't require the prospective tenant to have paid a holding deposit.
Let: This term signifies an established binding rental agreement between the landlord and tenant.
For both lettings and sales, the guidance addresses additional terms:
New On The Market: This term is used for a property not advertised since its last sale or rental. It should only be used for a brief period.
New Instruction: It applies to a property assigned to an agent for marketing recently, even if it was previously listed with another agent without being sold or rented.
New and Exclusive: This term refers to a property that is either new on the market or a new instruction, exclusively available through a specific agent or portal.
New Method of Sale/Let: This term is used when a property is being marketed for sale or rent using an alternative approach to the original advertisement, such as transitioning to an auction or sealed bid.
Reduced: This term indicates that a property's price has recently been reduced. The reduction should be genuine and comply with the Chartered Trading Standards Institute's guidelines on pricing practices.