A LANDLORD CHECKLIST… when you BUY TO LET
Getting Started …
There’s lots to consider when you’re first deciding what to buy, so let’s start with what’s important:
- Is there already a demand for rental property in the area? Beeston, Long Eaton and Stapleford are all extremely popular.
- Are there local and national employers nearby?
- Are shops, services and schools within easy reach?
- Think about your ideal tenant and what they’d look for in a particular location.
The type of Property
- Think again about your ideal tenant.
- Flats and apartments can be popular with couples or single tenants.
- Smaller houses often suit couples or growing families.
- Larger houses are preferred by established families often looking for longer term housing.
Financing The Purchase
- A buy to let mortgage is the main form of finance used by Landlords.
- Larger deposits are usually required, you’ll need to provide around 25% of the purchase price as a deposit.
- Additional stamp duty tax is payable when buying a second property.
- Solicitors often offer fixed conveyancing costs but disbursements, search fees etc may vary.
Additional Costs Linked to your Rental Income
Its not just about watching the rent come in;
- Will the proposed rent cover your monthly mortgage repayment?
- You’ll need buildings insurance to protect your investment, maybe contents too. Do you need to refurbish or renovate? A good quality kitchen and bathroom and an efficient heating system are a must for any tenants!
- Have you budgeted for void or empty periods when rent is not being paid?
Your Legal Obligations and Staying Compliant
- Landlords need to comply with more than 150 pieces of legislation and more is on the way .. failure to comply can result in severe penalties and this can be costly, you’ll need to understand your obligations employing a letting agent to manage your property helps to ensure you stay compliant, At Robert Ellis we’re experts in our field, we’ve been managing property for over 30 years.
- Landlord’s gas safety record
Certification must be provided to the tenant at the commencement of tenancy or within 28 days of a subsequent inspection.
- Electrical Installation Condition Reports (EICR)
A Landlord must commission a suitably qualified electrical contractor to provide a satisfactory EICR before a property is tenanted. These become renewable every 5 years. Your tenant must be provided with a copy.
- Smoke Alarm and Carbon Monoxide Detectors
Landlord must ensure operational fixed smoke alarms are provided on every floor of a property before a tenancy commences. Carbon monoxide detectors are required in any room with a solid fuel burning appliance although its best practice to provide these regardless.
- Energy Efficiency Certification (EPC)
- Furniture and Furnishings Fire Regulations
- Right to Rent
Prospective tenants must have the legal right to rent any property in England under immigration regulations. Landlords and letting agents are obligated to check the status of any tenants over the age of 18.
CALL OUR LETTINGS SPECIALISTS NOW FOR FURTHER ADVICE
A ‘NO -OBLIGATION’ PROPERTY VALUATION.