Chances are, the fact that you’re here with us shows that you’re interested in becoming a landlord in Leicester- and who could blame you? For centuries, owning property has proved to be a surefire way individuals to obtain a steady financial income, regardless of the ever-turbulent job market. With The Guardian reporting that over a quarter of households in the UK will rent privately by the end of 2021, it’s increasingly obvious that more Britons are wising up to this lucrative market – especially in the wake of the nation wide instability that Brexit could well end up in producing.
However, if becoming a landlord was the easiest job in the world then none of us would have jobs. It requires a strong financial base, mental perseverance, a keen business mind and a willingness to succeed. Think you have what it takes? Well if you’re sure then don’t panic not, everyone is born with these abilities, which is why we’ve made an all-encompassing guide on how you can become a landlord in Leicester.
Locate Your Inner Business Tycoon
Becoming a landlord situates you alongside the basis of every other business since the dawn of time (or at least consumer capitalist…): make enough money to outweigh expenses. It sounds as simple as anything, however, it’s wholly worth emphasising that – whilst it is one of the safest long-term financial investments you could make – there are no guarantees of success if you don’t conduct the business venture in the right way.
Also, with the average price of UK property constantly rising – sitting at a strong £226,234 as of February 2019 – becoming a landlord is a large financial investment for anyone hoping to become a landlord. The Council of Mortgage Lenders reported that the major three sources of finance which landlords used to pay for their properties are personal savings (used by 41% of landlords), buy-to-let mortgages (36%) and inherited funds (17%).
Become a Landlord Bookworm
When becoming a landlord, there is a whole new world of laws, regulations and codes of conduct which you need to accustom yourself with so that you possess all the necessary tools to deal with any situation or circumstances.
The information and provide it is absolutely imperative that you familiarise yourself with before making the necessary steps to investing in property and becoming a landlord are:
- The process of finding new tenants
- The procedure of beginning a new tenancy and the importance and details of tenancy agreements
- Your access and rights to tenant benefits and arrears as a landlords
- Overpayments of rent
- Renting out properties for multiple occupation households (HMOs)
- Property inspections
- What is expected of tenants and lawfully dealing with inappropriate and antisocial behaviour
- The procedure of ending a tenancy
- Repairing your property and maintenance
- Your council’s enforcement policy
As a Midlands based landlord, it is imperative that you get to grips with the particular information associated with your area – which the Leicester City Council provides in great detail.
Get Your (Legal) Facts Straight
It goes without saying that it is absolutely imperative that your understand your legal responsibilities as a landlord so that you don’t fall foul of any serious mishaps.
A key part of this is that, before it’s let out to tenants, you ensure your property is “fit for human cohabitation”. There are 29 hazards detailed by England’s Housing Health and Safety Regulations Act 2005 which all landlords are legally required to follow. Some of the key standards to bear in mind are that:
- The building is not neglected or in bad condition
- The building is stable
- There is a safe layout
- There is no serious damp problem
- There is an adequate amount of natural life
- There remains no property-related difficulty preparing, cooking or washing up food
- There is no ventilation problem
- There is no hot or cold water supply problem
- Drainage and lavatories are in good working condition
You of course must provide properly tested and working smoke alarms on each floor of your property before tenants move in. Likewise, a fully-functional carbon monoxide alarm in any rooms featuring a fireplace or form of woodburner.
Complying with the local Leicester laws and fulfilling an adequate risk assessment is important to ensure that any new tenants are not at risk when living in your property.
Legionnaires’ Disease is a bacterial illness which can be caused by breathing in small droplets of contaminated water. The majority of premises will be low risk, however, it is imperative as a landlord that you ensure a proper risk assessment is carried out and any necessary control measures introduced. The governments HSE (Health and Safety Executive) provide all the necessary details on landlord’s responsibilities regarding this.
Landlords are also required to provide an adequate Gas Safety Check – ensuring that all pipe work, flues and gas appliances are maintained in safe condition.
An Energy Performance Certificate is a necessary report you should get which shows the energy efficiency of your property. Potential tenants may well wish to see this before deciding to move in to your property so that they know how much they are likely to be paying for bills in the long run.
Is There a Licensing Scheme?
Something new to consider. Unbeknown to some, there are now 70 different councils in the UK who have set up additional, selective licensing schemes in an effort to increase standards within the private property sector. These go beyond the mandatory licensing which UK government enforces, and thus it is well worth checking the list sourced by Which detailing the jurisdictions which may and may not be affected by this scheme.
To date, 70 councils in England – or a little over one in five – have brought in schemes that go above and beyond the mandatory landlord licensing enforced by the government.
Invest in The Right Local Estate Agents
Learning about all this new information is one thing (and hats off to you if you are able to do it alone), however, implementing it in the most effective and professional means as possible as a solo individual may feel like a very daunting test for many. Such a reason is why so many landlords choose to work alongside, expert, professional estate agents to maximise the yield on their profits. Therefore, with such a highly saturated real estate agent market, it is absolutely crucial that you take the time to research and invest in the right company – for a service that is going to suit you.
Open House landlord services provide everything landlords could ever want from selling with estate agents; including professional photography, tenant screening, viewings to rent collection and expert property advertising and marketing. Get in contact with one of our friendly team members today and find about more on how our landlord services can help you manage your properties efficiently and effectively.