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Guide to Becoming A Landlord

A GUIDE TO BECOMING A LANDLORD
 

With a prominent level of demand for rental property in Burnley, it is understandable many people are considering becoming a landlord. Whether your focus is on generating short-term income, creating a new role for yourself, or safeguarding your long-term financial future, there is a lot to be said for being a landlord. However, landlords face many challenges, and you must know what the role entails. Also, you’ll find the support of skilled and experienced agents is vital when acting as a landlord. This is where IMC Estate and Lettings can help.  With over 30 years’ experience in the rental market and one of Burnleys oldest estate agents, our experience and personal service excels above others.

Researching where to buy rental accommodation

Not every landlord follows the same path. You may have inherited property which you don’t want to use, but you don’t want to sell. You may be trying, and failing, to sell property, and have decided that letting property is a suitable option.

If this is the case, you have the property, and your first step is to consider the local market and the local rental situation.

However, if you don’t yet have a rental property, you should research your options. If you want to buy rental accommodation close to where you currently live or work, your options may be limited. If you are intent on maximising your rental income, you should consider the entire country, especially the Burnley area and surroundings.

Expected rental yield of an area is essential, and if you are solely thinking about your return, this should be your starting point. The higher the rental yield, the better, as it is a measure of the return on property investment.

Who is my ideal tenant?

Your ideal tenant depends on several things, although ultimately, it is a tenant who pays on time and who treats your rental property with respect. Your property or location may dictate the type of tenant who is more likely to be interested in letting from you.

A town centre flat will appeal to young professionals while a terraced or semi-detached property with a garden is more likely to appeal to families. If you want to have a specific type of tenant in your rental, buy a property, or position your property, to reach this audience.

How to set a rental fee when letting property

It is understandable landlords want to know what rental price to set when letting rental property, especially if you are new to the industry. The average rental rates in the market are a good starting point, but is your property an average property?

Some features which justify a higher rental fee include, a garden, guaranteed parking, rooms with en-suite bathrooms. Take time to review the market, focusing on homes which are similar to yours, and comparable landlord services.

Can you be confident of the tenant paying their rental fee?

One of the biggest concerns a landlord has is wondering whether the tenant will pay their rental fee. If the tenant fails to pay rent each month, you may struggle to meet your bills and requirements. This is where having an agent managing the property for you like IMC will help keep control of your investment.

Key issues to remember before you let property

If you have undertaken any research into the letting industry, you will know there are many regulations for landlords to adhere to. IMC are more than happy to talk you through all the rules and regulations, but the following issues are all key factors to consider:

Gas Safety Certificate

If there are gas appliances in the property, you must obtain a Gas Safety Certificate. This certificate must be renewed annually, and the test must be undertaken by a Gas Safe registered gas engineer. The tenant should receive a copy of the document before they move into the property, and the tenant should receive all further certificates within 28 days of the inspection.  IMC has Gas Safety engineers available to arrange this for you.

Energy Performance Certificate (EPC)

Before you let property, the rental accommodation must have an Energy Performance Certificate, an EPC, in place, and the rating must be E or higher. If your rental property has an F or G rating, it is not eligible to be used as rental accommodation.

Once an EPC has been issued, it is valid for ten years, unless there has been a significant change to the property. There is no need to obtain a new EPC when there is a change of tenancy, as long as the EPC is valid, it remains suitable for a new tenant.  IMC can arrange this service for you.

Right To Rent check

Landlords in England must carry out the immigration Right To Rent check on a tenant within 28 days of the tenancy agreement. Any landlord who fails to do this, and an issue arises, can face a fine, so it is best to undertake this step when letting to tenants.

How can you make sure you comply with regulations?

The regulations mentioned above are critical, but they are just some of the regulation’s landlords must comply with. Did you know landlords must comply with over 100 laws and around 400 regulations?

With IMC Fully Managed Lettings, you can relax, knowing you are fully covered.

Vetting Tenants

Having the right tenant in place is vital, so it is essential landlords vet tenants IMC carry out full tenant checks and landlord references and home inspections to ensure every caution has been taken in finding your new tenant.

Steps to include when vetting tenants:

·         Undertake a credit check
·         Liaise with the applicant’s employer
·         Obtain a reference from a previous landlord
·         Meet with the tenant and form an opinion of them
·         Check the applicant’s social media accounts if necessary
          Home inspections of current property

You want to ascertain if the applicant can pay the rent each month and whether they will treat your home with respect. This is difficult to determine using previous information but doing so enhances your chances of selecting the most suitable tenant for your property.

There is a lot of work to do after this stage, but for anyone considering being a landlord, this guide will help you get started.

You need help being a landlord

Being a landlord is rewarding, but it is challenging, and you need assistance to be the best landlord you can be. THIS IS WHERE IMC ESTATE AND LETTINGS COME IN.

With IMC support, you can minimise the risk of rent arrears and landlord voids, and you get help and extra protection.

For peace of mind, confidence, and having the ability to provide the best service, contact IMC Estate and Lettings for fully managed letting services starting at 5%.