With demand for rental property continuing to grow and showing no signs of slowing down, now is a great time to step into the world of lettings. But being a landlord isn’t right for everyone, and there are things you must consider before investing in the private rental sector.
If you are not dedicated to renting out property, you could find yourself losing money and gaining a considerable amount of stress. This is why we have put together a list of three key things you must consider before becoming a landlord.
However, remember that even with this advice, the lettings sector and property market are constantly changing, which means that what is right today may not be right tomorrow.
Those that are up for the challenge could find that becoming a landlord is extremely rewarding and financially lucrative.
Before you make the decision, ask yourself these questions?
- Why do I want to become a landlord?
- Do I have the time and energy to rent out property?
- Would I be happy dealing with tenants on a regular basis?
The answers to these questions should tell you whether you want to be a landlord for the right reasons, or whether you’re just looking to make some more money.
If you are ready to take on the challenge of becoming a landlord, here are the top three things you must consider:
How much experience do I have?
Of course, those with previous experience in the lettings sector will be better equipped at renting out property. However, everyone has to start somewhere! Just because you may not have experience in the private rental sector, it doesn’t mean that you don’t have any skills that will prove useful. All landlords need good communication skills and financial abilities. If you need help and advice, Landlord News will keep you up to date with all of the regulations and rules that you must comply with. The website will also inform you of all the goings on in the property market.
What type of landlord do I want to be?
The property market is extremely diverse, which means that you can choose to rent out whatever type of accommodation you wish. If you are purchasing your first rental property, it is a good ideal to choose a specialty and stick to it until you are ready to branch out into something new. You may decide that you want to let your property to student tenants, or maybe you’d prefer to cater to families with children. The best way to make the right choice is to look at the type of demand in the area you are thinking of investing in.
How can I be financially secure?
Naturally, most people who rent out property want to make some money from it. However, if you mismanage your portfolio, you could find yourself losing money or struggling to make ends meet. In order to ensure that you’re a successful landlord, you must budget very seriously and understand all of the outgoings that you must pay for on a regular basis. It is always important to protect your investment with Landlord Insurance, which will help if you have any issues with a tenancy or suffer property damage. However, you should remember to put a contingency plan in place.
After considering these three things, you can enter the world of lettings! Throughout your journey as a landlord, remember that Landlord News and Just Landlords provide regular news and updates to help you stick to the law and understand your role.
Disclaimer: This article is for information only and is not official guidance, FCA approved, or legally precise. Just Landlords has used all reasonable care in compiling the information but make no warranty as to its accuracy. If you require information on landlord legislation or best practices please contact your legal representative. For details see our conditions.