When an ordinary homeowner becomes a landlord there are issues to cope with. The first thing is to attain the mindset and temperament of a landlord and understand that he must be the business like.
So, ask yourself
- Is it worth sticking to this property?
- How to handle strangers moving to your home or second property?
- Do you get time to manage the nuances of renting business?
Whatever the reason for holding and renting out a spare house, it can never work only when it is treated as a business.
Confirm that you have the temperament to be a landlord and the obligation to keep the business afloat. A landlord has multiple responsibilities:
Make sure plumbing, wiring and appliances do function well. Outdoor areas and stairways are safe. Be ready to respond to a tenant’s report on malfunction or problem.
Advertise the rental, select tenants and evict if needed after knowing the relevant laws. As an individual if you cannot perform these things, just become one of the people who approach a professional property-management service to run his rental property.
Also know the costs of keeping a place going. That must cover
- Mortgage payments
- Professional services
- Property management
- Consultants Fees
Flats for rent in London do command a competitive rent price. So your rent must reflect the prevailing rates. Add your cost of ownership after verifying the price range for similar units in your area.
Think your gut feeling is best in tenant screening: But a small landlord can get good results with an application form crafted by a fair-housing attorney and check each and every reference and piece of information.
The rental application should elicit applicant’s full identity, rental history and credit picture. Before performing a credit check, get the applicants to sign a consent for it.
Treat everyone equally. But your criteria for accepting or rejecting applicants must be fair. Make that policy known by giving it in writing. If you reject someone on the basis of information get a screening service or data broker. Disclose to the applicant the problem and how it was learned.
Invest the Rent in Property
Any hike in rents must be followed by putting three months’ worth rent back into the property. The main complaint tenants have about landlords is that they raise the rent but don’t put anything back into the property.