Letting out your property may seem like an easy way to make money, and when done correctly it can be a great source of regular income. But there are many potential pitfalls that unassuming landlords may fall into.
The wrong location
When purchasing a property to let, it’s important to research the location.
When letting to young professionals, local amenities such as bars, shops, restaurants and train stations are key factors. If you are looking to target a regular turnover of student tenants, good bus routes to the university campus are essential.
Location will also have an effect on your potential income. Being aware of rent charges for nearby properties will ensure you are being competitive for the area. The local area may also have an impact on the level of finish expected in the property. Tenants in higher value areas will most likely expect better standards than those looking in lower priced areas. Be sure to target your property to the expectations of potential tenants for the location.
Knowing the area and the audience you are trying to attract will help you secure regular tenants.
Having the wrong insurance
An easy mistake to make as a potential landlord is having the wrong insurance in place. You may think that your standard home insurance will cover you, but that is not designed for let properties.
A good landlord insurance policy will include buildings, contents and accidental damage cover. Landlords' liability insurance will protect you if any tenants try and sue you for an accident that has happened in your property. Rent guarantee insurance can also help you maintain an income in the event of unpaid rent if the tenant is still in the property.
Finding the right level of insurance for your needs is important. Comparison websites can help in some instances, but seeking help and advice from a professional property management agency can give you the reassurance you need.
Ignoring the required safety standards
When letting out a property, there are a number of required regulations that landlords should be aware of.
Legal acts with regards to electrical equipment, gas and fire safety regulations must be followed to protect both the landlord and the tenants. All landlords have a legal responsibility to ensure that the fixed electrical installation and any appliances supplied are safe. Annual safety checks to all gas appliances in the property must also be made.
Not taking care of these areas could lead to potential problems, and playing ignorant in the case of any issues won’t be possible. Landlords have a responsibility for these areas, so a thorough understanding of them is necessary.
Not checking on the property
The tenants are in, the first few months of rent have been received and everything seems to be going fine. There’s no need to keep checking the property right?
The chances are everything during the duration of a tenancy will run smoothly. There could be the odd occasion though where you return to the property at the end of a tenancy to find it hasn’t been maintained as expected. This could have been monitored by checking the property throughout the year, and managing any issues as they appear.
This needn’t be intrusive to your tenants either. Scheduled maintenance checks will benefit your tenants by dealing with any problems as they arise. Some agencies also offer fully managed services that assign a dedicated manager to look after the property so you don’t have to. After all, a happy house equals happy tenants and a happy you.
If you are looking for complete property management in Coventry, Leamington Spa or Kenilworth, get in touch with Warwick Accommodation Landlord Services.