Becoming a landlord in 2024
Stepping into the shoes of a landlord is an exciting prospect, but it’s also a big responsibility which shouldn’t be taken lightly. If you’re a potential property investor, here are the key things you’ll need to know before embarking on your journey to financial security.
Understand the market
Property investment is no get-rich-quick scheme, so you’ll need to take some time to research beforehand. The property market is dynamic and shaped by fluctuating factors like economic conditions, housing demand and evolving legislation. So not only will you need to be informed from the get-go, but you will also need to keep your finger on the pulse at all times to manage your property effectively.
Legalities and obligations
Becoming a landlord means taking on a host of legal responsibilities, and there are serious consequences for non-adherence. From tenancy agreements to safety regulations, legal compliance is essential in every facet of letting out a home. Make sure to familiarise yourself with the latest legislation, ensuring that your property complies with all legal requirements. As the landscape continues to evolve and legislation tightens, it makes sense to invest in effective property management and have an expert letting agent on your side to guide you through the legalities.
Get to know the basics
Being a landlord goes beyond just collecting rent. Successful property management requires tenant screening, regular maintenance, and clear communication with the people living in your property. It’s important to have a robust system in place for property upkeep, as this will ensure that your investment remains suitable for your current tenants, and desirable for any future tenants.
Financial planning
As with any investment, establishing a budget is paramount. Make sure to speak with your agent and calculate your potential return on investment (ROI). Buy-to-let properties are an investment which requires money input, so you’ll need to factor in mortgage payments, property taxes and maintenance costs before you can figure out your ROI. It’s also important to remember that a secondary stream of income will not be your only return. Your property is an asset that will grow in value over the years, so try to plan for the future when deciding on a budget.
Take out landlord insurance
It’s no secret that there are risks involved with being a landlord. Things like unexpected loss of income or damage to your property could put you in a difficult financial position. By taking out appropriate insurance coverage, you can protect yourself and your investment even if the worst does happen. Landlord insurance is a specialised package which can include emergence assistance cover and legal expenses protection.
Hire a letting agent
The intricacies of property management can be difficult to navigate alone. A letting agent can be your guiding light, ensuring that your property remains legally compliant and that your tenants are trustworthy and reliable. Property professionals specialise in the marketing of your property, tenant sourcing, screening, and the day-to-day logistics of property management. This expertise on your side can be invaluable, especially if you’re a first-time landlord seeking a smoother entry into the market.
Contact us
Thinking of becoming a landlord? Contact your local Guild Member for expert advice and guidance
