There is a general feeling currently that there has never been a better time to become a landlord; the demand for private rented accommodation is at an all-time high and the amount of money to be made from letting properties can be lucrative. However, this doesn’t mean that being a landlord is right for everyone. In fact, the type of work involved means that unless you are dedicated, you could find yourself losing money and gaining a considerable amount of stress.
This is why Just Landlords is helping those that are thinking of joining the private rental sector by creating this article containing some of the things you should consider before embarking on your new career path. Even with this advice, it is important to keep in mind that the private rental sector – as well as the housing market – is constantly changing, which means that what is right today may not be tomorrow.
However, if you are up for the challenge, you could find the whole experience extremely rewarding in both a personal and financial sense. In this article, we look in depth at the things you need to consider, however, there are also a few quick questions you can ask yourself if you are thinking about becoming a landlord:
- Why do I want to become a landlord?
- Do I realistically have the time and energy to be a landlord?
- Would I be happy dealing with tenants on a regular basis?
The answers to these questions should show you whether you want to be a landlord or whether you are just looking to make some extra income – the latter of which may not be so easy! However, if you think you are ready to take on the challenge, read on for our advice:
3 Top Things to Consider
So you are ready and willing to join the landlord industry, but where do you begin? Well the three most important things you need to consider are…
How much experience do I have?
Naturally, those with previous experience in the private rental sector will benefit from their knowledge. However, everyone has to start out somewhere! Just because you don’t have experience in lettings doesn’t mean you won’t have skills that could prove useful, such as people skills or an accounting qualification. There is also an abundance of websites and magazines that you can read in order to find out more about the lettings industry and perfect your new skills.
What type of landlord do I want to be?
The landlord industry is extremely diverse, which means if you are starting out for the first time, it would be wise to choose a speciality and stick to it until you are ready to branch out into something new. If you live near a university, you could try specialising in student lettings, or if you are in a more rural area, you may want to cater to families with young children. The best way to decide which type of letting you should specialise in is to look at the type of demand there is in your local area.
How can I be financially secure?
At the end of the day, most people who let out a property do so in order to make money. However, if they mismanage their property portfolios, they could find this extremely difficult. In order to ensure that you are a successful landlord, you need to take budgeting extremely seriously and understand all the outgoings that you will have to pay on a frequent basis. All landlords should protect themselves with landlord insurance, which will help them should they have issues with a tenancy or there are damages to their properties. However, it’s also advisable to have a contingency fund in place.
After considering these three things and knowing that you have all the right skills and abilities in place, you can start your lettings business. Once you are set up, make sure you read our other blogs that are updated on a regular basis in order to help our customers make the most out of their businesses and handle common issues quickly and easily.
- The Essential Guide to Being a Landlord. (n.d.). Retrieved from the Channel 4 website: https://www.channel4.com/4homes/buy-sell/buying-property/buy-to-let/being-a-landlord-08-06-06
- Being a Landlord and Renting out a Room. (n.d.). Retrieved from the GOV.UK website: https://www.gov.uk/browse/housing/landlords
- The Rules Of: Being a Landlord. (2014). Retrieved from Prime Location website: https://www.primelocation.com/guides/letting/guide-to-being-a-landlord/
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.