Becoming a landlord can be an exciting and potentially profitable endeavour. As a new landlord in Thornbury, there are several key things you need to know to follow all the rules and regulations, keep your tenants happy, and protect your investment. This guide will overview everything from finding tenants to staying on top of maintenance.
Tenant Selection
You want to find responsible, reliable tenants who will pay the rent on time and treat your property well. Thoroughly check references from previous landlords and employers, review credit reports, and verify their income. Require a security deposit and the first month’s rent upfront. Draw up a comprehensive tenancy agreement clearly outlining expectations and consequences for late/missing rent.
Boiler Servicing
One of the most important safety tasks is getting the boiler professionally serviced at least once a year. Gas Safe engineers Thornbury should inspect the boiler, pipes, flue, and ventilation. They will carry out any needed repairs and replace parts that are worn out. Make sure to choose a reputable company when booking a boiler repair Thornbury. Provide tenants with instructions so they know how to properly operate the boiler. Schedule services during the warmer months when the boiler isn’t being used daily.
Property Maintenance
Well-maintained properties attract better tenants and have higher occupancy rates. Inspect the property thoroughly several times a year, checking for any repairs needed or signs of serious issues arising. Tenants must inform you about problems but don’t rely solely on them reporting maintenance needs. Budget approximately 10% of rental income for repairs each year.
Right to Rent Checks
Since 2016, all landlords in England must check the immigration status of their tenants before renting to them, even for a room in your own home. Review original documents verifying their identity, visa, and right to rent in the UK. Make copies to keep for record-keeping. Checks must be repeated if the initial rental period exceeds 12 months.
Protecting Deposits
Landlords must protect any deposit paid by tenants through an authorised scheme. You have 30 days from receiving the payment to register it and provide the prescribed information to the tenant. At the end of the tenancy, you can make agreed deductions for property damage or unpaid rent, then return the remainder within ten days. Disputes can be taken to arbitration.
Insurance Requirements
You must have building insurance covering loss or damage at all rental properties. Contents insurance is highly recommended, too. Review policies annually for adequate coverage as needed upgrades are made. Liability insurance provides protection if tenants are injured. Many mortgage lenders require specific landlord insurance policies. Shop around for competitive premiums.
Tax Obligations
Rental income and allowable expenses must be reported annually. You can deduct costs like property maintenance, utility bills, insurance premiums and advertising for new tenants. Seek guidance from an accountant experienced with rental properties to maximise your tax savings while complying with HMRC regulations.
New landlords can avoid stressful mistakes by staying informed about the legal requirements and best practices. Institute clear policies and proactively address maintenance needs. Providing tenants with a clean, well-kept rental at a fair price will make for positive ongoing relationships and a successful investment over the long term. Reinvest your profits to continually enhance and expand your real estate portfolio.
