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Becoming a landlord - tips please


Chez2

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I'm considering buying a property to let as a pension investment. Are there any websites that detail the legal requirements / obligations of a landlord?

 

I'm willing to trade maximum revenue for ease of management so I'm considering some new builds in the next village to my home.

 

Is there any size of property that is more in demand? I'm wondering if there is more demand for a two bed or three bed semi. I'm going to do market research by looking in estate agents and letting agents in my local area but I would be grateful for any advice form experienced landlords.

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I would probably say 2 beds are in demand more than 3. Even couples only want a 2 bed.

 

You could join the National Landlords Association or the Residential Landlords Association for about £80 pa. They have helplines and landlord forums.

 

I would do your research in your chosen location for demand. Also if you have little experience then perhaps go with a lettings agent to start with until you learn the ropes.

 

If you do go diy, then you will need a gas safety certificate, epc certificate. You will need to know about credit checks, guarantors if required, inventories and writing up the ast. I use ast,s off the above named associations as they are up to date. Will will also need how to give the prescribed information.

 

Do you want to start with a 6 month or 12 month contract? If the tenant decides to keep on do want to renew the contract or go rollover?

 

Also consider your tenant. Non smoker? pets? working or certain housing benefits?

 

I would also consider the fact that everyone seems to be going into the buy to let market. My fear is when the economy does eventually start to rise and mortgages are more easily available the renters will become buyers leaving a lot of landlords with properties on their hands. When that happens rents drop. It will be time to sell.

 

Good luck with it Chez2.

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Thanks. I'm not sure if its something we will go ahead with as yet. This is my first step into reseraching the subject so I haven't made a decision. Its a medium to long term investment. I'm not thinking about building up a large portfolio.

 

We have a property abroad and considered oversupply when we purchased that. We thought tha market may just be flooded with too many buy to re sell or buy to rent to holiday makers so we decided just to buy one property. Its a good job we did that with the recession. We keep that for ourselves and don't rent it out. We were planning to re sell in about five years time but I think we are going to keep it longer term as a second home. If we do buy to let in the UK it would have to be in an area where we could sell the property if there should be an oversupply of houses for rent.

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The landlordzone is recommended reading, if only to realise what can go wrong with letting.

 

I bought the Dummies guide to renting out your prpoerty as part of my preparations. It is onlly £11 in its Kindle edition. But all the information is available on the web. Agency websites often cover all the key points around safety.

 

 

For a simple letting arrangement (i.e. not a House in Multiple Occupation) you will need:

 

- An electrical inspection and condition report (EICR) on the property plus Portable Appliance Testing of any electrical appliances you supply.

- A Gas Safety Inspection repot (CP12) for any gas appliances in the property

- Any furniture your supply will have to have the correct labels required by the Furniture and Furnishings Fire Safety Regulations

- If the house is in an area affected by Radon Gas, you may need some remediation work - Radon Gas risk should be picked up as part of the searches if you are buying a property to rent.

- An Energy Performance Certificate . Again, a house bought for letting should have an EPC. Rules coming into force in 2018 will require landlords to upgrade properties in the F & G bands so make sure any property you buy is at least in Band E or can reach this level for the money you are prepare to invest in preparing it for rental.

- To protect the deposit (security bond) you take from tenants in an approved scheme.

 

I also used the Housing Health and Safety Rating System (HHSRS) to evaluate the risks in the property I was letting and remediated the obvious risks.

 

Other regulations come into force once you rent the property, e.g. to maintain it adequately.

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Thanks. There are lots of items for me to read up on. I'm still leaning more towards a newer propertry to make the upkeep easier. We have been refurbing houses since 1985 and took the last one back to the bare shell, including removing internal walls and ceilings. I don't want to have to do this with a rented property so I will have to see if the financial side stacks up.

 

I'm sure I will be back with more questions when I've had a read at the advice you have given.

 

Thanks again.

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Hi Chez, I run an independent housing association that leases properties from private owners (landlords) on long term lease agreements (and then I sublet those properties). This allows you to be hands off, while benefiting from guaranteed monthly income (as the rent comes from the housing association, even if the occupant fails to pay the rent). I also put right any tenant damage, so you can be assured of getting your property back in good condition at the end of the lease period. I currently manage around 50 tenancies, most of which are in Sheffield. If you send me your e-mail address I can send you further information about how this works.

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Hello, I am working for a company providing free cavity wall and loft insulation as well as combination condensing boilers for private houses. This includes landlords. This is a free scheme using government funding via the big six energy companies. If you would like to me to get my manager to give you a call back to answer any questions, you can email me at tom.w.1994@hotmail.com

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Hello, I am working for a company providing free cavity wall and loft insulation as well as combination condensing boilers for private houses. This includes landlords. This is a free scheme using government funding via the big six energy companies. If you would like to me to get my manager to give you a call back to answer any questions, you can email me at tom.w.1994@hotmail.com

 

Sorry to stray off topic but has that funding not finished now?

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