Are you considering becoming a landlord? It can seem like a minefield, but here we will look at the steps you’ll need to follow and whether it’s something you want to commit to.
Firstly, you’ll need to consider the costs and potential returns. If you don’t already own a property, consider the expenses of buying one and preparing it for tenants and set this off against the potential income you’ll receive from renting it out. Two income streams can come from renting: monthly rent and property value increase. If the property decreases in value, your costs exceed your rent, or the property sits empty for long periods; then being a landlord is a medium to long-range investment risk.
Buying a house will incur valuation fees, stamp duty, legal costs, and property surveys. Day-to-day renting expenditure includes letting agent’s fees, redecorating, insurance, annual safety checks, and building maintenance. You’ll also need to consider the costs involved if you’re unhappy with how tenants have left your property after moving out.
Understanding your legal responsibilities is also essential. You must provide new tenants with an Energy Performance Certificate, letting agent’s details, and a gas safety certificate for each gas appliance. You are now required to protect a tenant’s deposit in a UK government-approved deposit protection scheme. As a landlord, you must ensure smoke alarms are installed on every floor, and electrical devices have been PAT tested. You’ll want to access the property occasionally; just be sure to give plenty of notice to the occupants.
When it comes to decorating, it may not improve the value of your property much, but it can make it more attractive in a competitive market. Neutral is the best option and will go with any furniture and furnishings. A satin finish is easier to clean after the tenancy. Opt for a mid-tone carpet that will only show up the stains a little, and don’t go super cheap otherwise; they won’t last the professional cleaning you’ll want done at the end of each tenancy. For Contract Cleaning Cheltenham, contact https://biggreencleaning.co.uk
If you’re supplying white goods, the minimum requirement would be a washing machine, cooker, and fridge/freezer. A furnished property will attract temporary rentals, are great for those on short-term working contracts, and showcase your property well. Providing the basics means a sofa and side table in the living area, a dining table and chairs, and a bed and side table in the bedrooms. Remember to create an inventory of every item you leave on the property and go through this at the end of the tenancy.