My husband is keen for us to purchase another property, he has set his sights on becoming a landlord.  I have my reservations because you hear of so many horror stories about nightmare tenants. They come in and trash the property and fail to pay any rent, then you have a dreadful time of it actually getting them to leave! So, for me the biggest thing to get sorted would be adequate landlord insurance. But I have written a little guide about the types of things you need to know as a landlord. It’s a big decision really, you want to make sure you get it right.

Landlord Insurance

This would be at the top of my list. It’s important you safeguard your investment. So, compare landlord insurance and choose a policy that is most suitable for your needs. Think about malicious damage, theft, and loss of rent cover so you have complete peace of mind if something goes wrong.

Letting Agent

You need to consider whether you want to use a letting agent or manage the property yourself. A letting agency can be expensive but they will be familiar with the regulations you need to know as a landlord. If you live far away from your rental property it will be easier having a letting agency in the area manage it for you. However, we would only buy a second property in our vicinity so we probably would try and cut out the cost of a letting agent.

Inventory

It’s a good idea you write an inventory so there is no confusion about the current state of the property and what exactly is included. It will give you documented proof too if anything isn’t in the same condition stated when the tenant first moved in. Obviously you need to account for general wear and tear and be reasonable in that respect.

Landlord Responsibilities

When you are renting out a property you do have to consider your landlord responsibilities. I have included more information on these below:

Join A Deposit Protection Scheme

You will have to join a deposit protection scheme for the benefit of your tenant. Fortunately, if your happy for the DPS companies to hold onto the deposit you don’t have to pay a fee for their services. They also offer a free dispute resolution service if something doesn’t quite go to plan. You will be fined if you don’t protect the deposit, so this is definitely something you need to get sorted.

Energy Performance Certificate

When you rent out your property you must order an energy performance certificate for your tenants. Fortunately, they are valid for 10 years, so you do not need to do this very often. If your lucky the buy to let property you now own might already have a valid EPC. You can check if this is the case over on the Landmark website which operates on behalf of the government. You also need to include information on your energy performance rating in any adverts you list promoting your buy to let property.

In terms of cost you are looking at about £60 to £120 depending on the size of the property. Get a few quotes before settling on a company.

Safely Maintained Property

You need to make sure you get a new gas safety certificate every 12 months and give a copy of this to your tenants. This can cost about £90 but depends on how many appliances you need to be checked. As of the 1^st of July 2020, landlords also need to obtain a Electrical Installation Condition report this will either let you know you safely meet the standards required or you need repair work. Reports can last a maximum of 5 years so if your wiring is in good condition its not something you will have to do very regularly. The report can cost between £100 – £250 depending on the property size.

There is quite a lot to get your head round becoming a landlord. But there is so many resources online to give you the guidance you need.