Thinking about renting out a property for the first time and not sure where to start? In the UK, private renting is becoming more popular with the rental sector doubling since 2001, rising from 2.3 million to a massive 5.4 million privately rented households. With the trend predicted to continue with an additional 1.8 million households becoming private renters by 2025, is now the time for you to become a landlord? Our property experts run-through everything you need to know to get started.
Is becoming a landlord right for me?
Becoming a landlord can be exciting, but daunting in equal measure, and entering the buy-to-let market might not be for everyone. ‘Generation rent’ is on the rise and is set to remain with more than half of 20-39-year-olds expected to be renting privately by 2025, this is an exciting time to be a landlord with confidence in the market remaining high.
Sound interesting? We’ve highlighted some of the key steps to becoming a landlord.
Step one - Deciding where to buy-to-let
The first and most important decision to make is where to buy-to-let. While the temptation may be high to purchase in an area you’re most familiar and comfortable with, this is not always the best decision. Our team would recommend doing some research to find where the best and worst areas are, for factors such as the average yield and property damage.
It is also worth taking a look into the local property competition, you can do this by contacting us today or by using online property sites.
Step two - Think about what type of tenants you should rent to
Depending on where you have decided to start your portfolio, choosing the type of tenant to rent to might be a simple task. For example, if you’ve purchased in a town where there is a university, student rentals may be an obvious option. Of course, you may not have a preference.
Step three - Going alone or using an agent?
Once you have found your perfect property in the right location and decided who you’ll be targeting, next comes the decision on how to market your property. If you are looking to manage the property yourself, it’s worth taking into consideration the amount of leg work you have to do yourself, from making sure your property is being viewed, weighing up the costs and getting the contracts spot on.
If you go through a lettings agency, they will make sure legalities are adhered to, find you tenants, and ensure the process is smooth from start to finish.
Step four - Handling the legal side
Landlords have a number of legalities, obligations and responsibilities to adhere to. From tenancy agreements and deposits to gas safety and immigration checks, a landlord’s responsibilities extend further than many may think.
Check out the government website for a rundown on landlord responsibilities. You will also need to stay up-to-date with the latest legislation changes and news.
Looking for a lettings agency in Colchester or the surrounding Essex area to take care of your buy-to-let property? Get in touch with our team today.