Becoming a landlord can be an overwhelming prospect. On the one hand, you’re excited and can’t wait to get started, but on the other hand, you feel a little out of your depth. Preparation is key and you’ll need to understand all of the costs involved, especially if you don’t already own the property that you plan to rent out.
There will be legal fees, stamp duty, valuation, and survey costs mortgage fees etc. You’ll also need to pay income tax on your rental home. Understand that being a landlord is a job and you might not always make a profit.
Make sure you understand all of the legalities involved so that you don’t end up getting yourself into trouble. You’ll need to make sure the property meets all relevant safety standards, like having working smoke alarms installed on each floor and ensuring all electrics are safe. The building cannot be in bad condition, it has to be fit for human habitation.
Before you move any tenants in, you’ll need to do thorough inspections of the property to determine whether or not any repairs need to be done.
Consider whether you’ll be providing any white goods or furniture and, if you are, remember that you are responsible for any repairs or replacements for these items. It would be wise to always keep some money aside for these sorts of unforeseen expenses.
If you have multiple properties that you’re going to be renting out, it might be wise to invest in property management software that will essentially help you keep track of things like tenancy dates, manage maintenance tasks and historical records of things like gas and electric inspections.
You might also want to get a lettings agent involved to reduce your involvement with the tenancy, especially if you’re new to the game and don’t really know what you’re doing!