Five mistakes that a landlord can make and how to stop them
The quality of landlords and their understanding of the Buy-to-let market has been improving over the years but there is no doubt that mistakes are still being made.
Read our five tips so that you get ahead in the market.
Not planning ahead for larger costs
Investing in a house is a long-term project and while many landlords can budget accordingly it can be very easy to underestimate the size of the task at hand.
In the last decade, standards have increased dramatically demanding that kitchens and bathrooms will need refurbishing every ten years at the most, along with boilers.
More prominently, it is vital to factor in redecorating every five years which includes new carpets and replacement of furniture.
Relying on Market Growth
Although most landlords understand that the days of rapid market growth are behind us, some still believe that their investment is safe no matter what.
Even with all the excellent information and support out there for landlords, some are nevertheless having to subsidise their investment because they didn’t prepare well enough before they made the purchase.
To ensure your investment gives the returns you want and need, you must research your local market properly and take expert advice, so that you’re able to put together accurate budgets and forecasts, with figures for prices, rents, expenditure and tax.
Not researching agents properly
Until the lettings market becomes regulated, the best way to protect yourself as a landlord is to engage the best agent you can find in your area.
Firstly, they should be a member of a recognised industry body or association, such as ARLA, NALS or RICS.
These agents must adhere to a code of conduct and will undergo ongoing training, so you can be much more confident they are operating to the highest standards.
Not having the right insurance
It may be common knowledge that landlords require specialist insurance for the property they are letting, but there is still often a lack of clarity on exactly what cover is needed and what it is advisable to take out.
And it is often not until there is a problem that landlords realise the hard way that their policy is inadequate.
If you don’t have the right cover, you could find yourself not only out of pocket for repairs, but also with lost income from rent arrears and a heavy legal bill if you happen to be prosecuted for any accidents that occur in your property.
Waiting too long to start the eviction process
If you have a managing agent, the good ones that know the legal process will help you with this – and this is just one reason why it’s advisable to have a professional to manage your let.
When a tenant falls behind in their rent, it’s usually a sign that either they can’t really afford it or they’re simply the kind of tenant who wants to avoid paying.
In both cases, the matter needs to be addressed immediately and if the rent is not made up right away, the eviction process needs to be started.
If you need advice on how to manage your Surrey property then contact us here.
Alternatvely if you want to know how we can help you as a landlord then click here.