5 Things New Landlords To Think About

Property can be a great way to earn a passive income, but it can also be a huge burden if handled incorrectly.

If you are thinking of getting into property letting you have to consider the whos, the whats, and the wheres of it all. Without a well-defined goal, you may end up letting for the sake of letting, possibly to the wrong people or in the wrong place.

If you know what you want out of a rented property it can be a hassle-free financial supplement, or even a full-time job, that will require minimal oversight.

To help you more clearly define what you want out of your buy-to-let property, we have provided a guide that covers some of the essentials.

How Much Time Do You Have?

Are you a busy professional looking to make some more money on the side or are you considering letting property full-time?

You need to consider how much time and resources you are willing to put into a property. Yes, buying a cheap property that needs some work, renovating it, and then letting it often can be more financially efficient. But if you’re working 40+ hours a week it’s not realistic.

Consider carefully how much time and energy you have before buying a property. sSme will require basic furnishing and they’re good to go. However, others will need a total overhaul that could take several months. 

What Is Your Long-Term Goal?

Are you buying to let? Or are you buying to let with the eventual goal of selling at a profit? Think about what you want to do long-term before buying a property.

It could inform the tenants that you bring on. For example, if looking to sell it on, perhaps letting to a young couple looking for a long-time home later down the road is a good idea.

It will also inform the kind of property that you are going to get. A city-centre property in a university city will likely only sell to other landlords.

Meanwhile setting up a country home as an HMO may cause issues when it comes time to sell as those buying to live in a home will not be interested.

How Will You Handle Expenses?

Are you going to cover utilities and add them to the rent bill? Or will rent be for the property alone? This is yet another consideration when starting.

Most opt for the latter, allowing tenants to cover utilities. But sometimes, especially with HMOs, you may make more by adding a flat charge to each tenant.

There are other considerations too like your mortgage repayments and the tax that comes with that.

Sometimes you can uncomplicate things by outsourcing tax costs to reputable advisors such as TaxKings who will ensure that payments are accounted for; allowing you to focus on your responsibilities as a landlord. 

Who Are You Letting To?

Who you let to will define how much time you’ll be spending on a bought property. Students will often pay much higher rates for city-centre flats but could cause issues with noise complaints and damage.

Again, this depends on the time that you have available to fill landlord roles. Some properties in towns and villages let to reliable occupants will provide you years of reliable income that require minimal oversight.

If you are intending on letting it as your full-time job then it may be worth city properties. These properties may require more attention but will provide you with a higher income.

Who Is Going To Maintain Your Property?

A lot of the time becoming a landlord means that you are also becoming a handyman. From boiler repairs to meter readings, you may have to learn new skills to maintain your property.

For those with less time on their hands finding a trusted contractor who can handle all of the day to day maintenance is an option. Contractors can also handle essential alarm checks and safety certifications that could make all the difference to your property’s safety.

If you have the time and don’t want to spend excess on contractors, learn about all of the maintenance that falls within your responsibility.

Sometimes a broken light cord or a jammed door could be easily handled by a landlord for a fraction of the cost.