The Steps to Becoming a Landlord
Many people in the UK are now choosing to rent rather than buy. This is due to a combination of factors, including higher mortgage rates and an unstable job economy amongst others.
If you’ve ever thought about investing in property to let then now is a great time to do it. Letting property isn’t something you should jump into without being aware of what it entails though. Bearing this in mind, below are some of the key stops involved in becoming a landlord.
Invest in your first property
The first step to becoming a landlord is to invest in your first property. Factors to consider when choosing your first property include –
- Location – Location is always important when purchasing your first property. Properties in locations that have low crime rates and lots of nearby amenities are always easy to find tenants for.
- Property type – The type of property is another key consideration. If you want to get the most income from your investment then an apartment building or large house that can be separated into 2 or more flats, is a good idea.
Educate yourself on landlord law
One of the most important aspects of being a landlord and letting property is to educate yourself regarding landlord law. This is incredibly important since you need to know both your own rights and those of your tenants in case any problems arise.
If you’re not well educated about landlord law then you could do something rash that results in a liability claim being filed against you.
Getting landlord insurance
When you let property, having the right insurance is a must. In addition to getting cover for structural damage, you also need to protect yourself against risks such as loss of rent, liability claims and legal expenses. A good landlord insurance policy will cover you for all these things.
Your first step is to get landlord insurance quotes so you can compare them and pick the best policy at the most competitive price.
Finding your first tenants
Once you have your property you want to find tenants for it so you can start receiving a return on your investment. It’s important to be selective when it comes to tenants since they are often the biggest source of problems that landlords have to deal with.
Be sure to ask for references for previous landlords and also do an employment and criminal record check for any potential tenants.