It’s 2022, and it’s safe to say it’s still been a rough few years! But as Christmas becomes a distant memory, maybe you’re starting to look at a career change or a way to make a little extra money to keep you afloat while the economy recovers? If you happen to also have a second property, or the means to purchase one, then being a landlord might seem like the perfect option. Be your own boss and make easy money, right? Well, yes, but it’s not always the right route for everyone. Today’s blog gives you a feel for what it takes to be a landlord, so you can see if it’s the right move for you this year.
What It Means To Be A Landlord
Being a landlord means you are a person who owns a building, and you rent it out to other people. In this case, we’re talking specifically about renting out residential properties, whether that’s a studio flat, a 3-bed house or an HMO (house of multiple occupancy) for students. If you own it but other people pay you to live in it, you’re a landlord.
Being a landlord means you are accountable for the roof over someone else’s head. That’s a lot of responsibility when you come right down to it. It’s another property to maintain, and a lot of paperwork to manage, but it can be an incredibly lucrative income source if you approach it in the right way. But to do that you need to know what your responsibilities are, the best way to manage things, and when you need specialist help. Every landlord is a first timer once. Becoming a landlord can be a fantastic thing, a great career move or just a way to make some extra money on the side. Whatever your reasons, it’s a busy and very exciting time.
Your Responsibilities
As a landlord, you will have a number of responsibilities, both to your tenants and to the government. A lot of the groundwork can be done in the beginning before a tenant sets foot in your property, but there are also plenty of things you will need to keep a running track of, including organising checks etc. Just some of your responsibilities will include:
- Ensuring your property meets all health and safety requirements, including;
- Gas
- Electrical
- Legionella risk assessment
- Furnishings (if applicable)
- Alarm systems (fire and carbon monoxide)
- Clear escape routes
- Preventing mould
- Adequate security
- Regular gas safety checks
- Having the right mortgage on your property
- Ensuring any repairs or maintenance is carried out in a timely manner
- Having landlord insurance
- Sourcing and referencing tenants
- Conducting right to rent checks
- Arranging a tenancy agreement
- Taking a tenant’s deposit and securing it in a government-backed fund
Just to name a few. If you’re working with an estate agent, they should be able to guide you through your responsibilities and even take some of them on for you.
Would You Make A Good Landlord?
When it comes to renting out a property, there are hundreds of things you need to think about. But in amongst all of the logistical and legal issues is perhaps the most important – how do you make sure you’re a good landlord? It seems silly, but it’s a very important part of the job. If you aren’t a good landlord, you could see a high turnover of tenants, which ultimately isn’t profitable for you, or worse, you could get a bad reputation in the market. A few ways you can achieve this include:
- Be engaged in your property and your tenants (without being overbearing).
- Be reachable and responsive to both your tenants and estate agents.
- Respect the quiet enjoyment law (and resist the urge to go snooping).
- Consider allowing pets, now more than ever.
Of course, there’s a lot more to being a good landlord, but these are some of the more common things we see come up.
Should You Give It A Go?
If you’re looking for a new challenge and a second (or even main) income stream, there is no reason not to give being a landlord a go. Whether you have a second property you don’t know what to do with or are considering investing in a buy-to-let, we do recommend you get some help and support from the experts along the way. There is a lot that goes into being a landlord, and the worse mistake you can make is assuming it’s a passive income that sorts itself out without any input from you.
Of course, if you work with Northwood, you’ll get pretty close! Our guaranteed rent service means we take on all areas of managing your property, from finding and vetting tenants to managing maintenance and inspections, and even paying the rent if your tenants don’t so you’re not out of pocket. If you would like to know more about how we can help you become an amazing landlord in 2022, just get in touch with the team today.
