Being a landlord can be profitable, rewarding and even enjoyable at times. However, falling foul of any of the common landlord mistakes that we're going to cover can quickly turn it all into a nightmare. As you read on, we'll be looking at the mistakes that landlords make, and how you can avoid them.
One of the most common landlord mistakes is that they treat their property like a hobby. It could be that they’re accidental landlords, or maybe they’ve seen a course that sells the dream about how easy it all is. The point to note here is that a rental property is an investment and it needs to be taken seriously.
There needs to be a plan to ensure that everything runs smoothly. There needs to be a separate bank account to deal with all things property related and there needs to be an exit strategy. Don’t be one of the landlords that simply plods along hoping for the best.
Another one of the mistakes landlords make is that they're overly optimistic about the numbers. They have an idea of what they think they can charge for the rent, and then make the mistake of assuming that the property will be permanently occupied.
If you’ve got your numbers wrong, you’re left in a position where you can’t budget correctly. All it then takes is one void period or a broken boiler, and your days as a landlord could come to an abrupt halt.
There is certainly a sense of pressure when experiencing a void period. As that void goes on, there becomes a sense of almost desperation to get a tenant in. When it comes to common landlord mistakes, this is perhaps one of the worst as the desperation leads to just putting anyone into a property. This is often done at pace and there is a failure to carry out the appropriate checks.
Neglecting to carry out credit checks on tenants will hurt your pocket. If you also fail to carry out the checks required by the Right To Rent legislation, you’ll also find yourself falling foul of the law.
Another of the mistakes that landlords make is to use a tenancy agreement that they don’t understand. Maybe they’ve got a template from somewhere, or maybe they’ve paid for one to be produced. Either way, as a landlord, you need to understand what the agreement actually means.
Failing to understand a tenancy agreement leaves you in a scenario when rights and responsibilities aren’t understood. You could be taken advantage of or you could find yourself unknowingly breaking the law.
It could be that you’re busy. Maybe you just don’t like carrying out property inspections. Perhaps you find a million and one reasons to put off inspecting your property. This is one of the most common landlord mistakes and it’s one that can have major consequences.
By inspecting your property, you have the opportunity to identify issues such as damp and leaks. If you spot these early on, you can get a grip and prevent them from turning into bigger problems down the line. You could also spot signs that your tenant is subletting. While it may be a breach of the tenancy, it could also cause you problems for not declaring that you now have an HMO!
The legislation surrounding letting properties isn’t the most straightforward. Even if you have a grasp of it now, one of the biggest mistakes landlords make is not staying abreast of the changes. Hopefully, everyone is now well aware of the need to protect a deposit, but what about changes to electrical safety? How about changes to EPC ratings?
We’re also now awaiting some of the most significant updates to the legislation of all time. Landlords need to be ready for this and know exactly what all of the changes mean.
Another common mistake landlords make is thinking that they can do it all by themselves. They take on all of the responsibilities such as vetting tenants, carrying out checks and complying with the law, and then wonder why things seem to go wrong. Yes, it may cost you but this is exactly where a professional letting agent comes in. Any fee you pay is simply an investment in keeping your property running and ensuring that it's healthy.
By using our services, you can forget all about the common mistakes that landlords make. With us by your side, we can help your business flourish while keeping you on the right side of the law. Get in touch today and let us show you how.
Failing to treat it like a business
One of the most common landlord mistakes is that they treat their property like a hobby. It could be that they’re accidental landlords, or maybe they’ve seen a course that sells the dream about how easy it all is. The point to note here is that a rental property is an investment and it needs to be taken seriously.
There needs to be a plan to ensure that everything runs smoothly. There needs to be a separate bank account to deal with all things property related and there needs to be an exit strategy. Don’t be one of the landlords that simply plods along hoping for the best.
Getting the numbers wrong
Another one of the mistakes landlords make is that they're overly optimistic about the numbers. They have an idea of what they think they can charge for the rent, and then make the mistake of assuming that the property will be permanently occupied.
If you’ve got your numbers wrong, you’re left in a position where you can’t budget correctly. All it then takes is one void period or a broken boiler, and your days as a landlord could come to an abrupt halt.
Failing to check tenants
There is certainly a sense of pressure when experiencing a void period. As that void goes on, there becomes a sense of almost desperation to get a tenant in. When it comes to common landlord mistakes, this is perhaps one of the worst as the desperation leads to just putting anyone into a property. This is often done at pace and there is a failure to carry out the appropriate checks.
Neglecting to carry out credit checks on tenants will hurt your pocket. If you also fail to carry out the checks required by the Right To Rent legislation, you’ll also find yourself falling foul of the law.
Not understanding the tenancy agreement
Another of the mistakes that landlords make is to use a tenancy agreement that they don’t understand. Maybe they’ve got a template from somewhere, or maybe they’ve paid for one to be produced. Either way, as a landlord, you need to understand what the agreement actually means.
Failing to understand a tenancy agreement leaves you in a scenario when rights and responsibilities aren’t understood. You could be taken advantage of or you could find yourself unknowingly breaking the law.
Missing property inspections
It could be that you’re busy. Maybe you just don’t like carrying out property inspections. Perhaps you find a million and one reasons to put off inspecting your property. This is one of the most common landlord mistakes and it’s one that can have major consequences.
By inspecting your property, you have the opportunity to identify issues such as damp and leaks. If you spot these early on, you can get a grip and prevent them from turning into bigger problems down the line. You could also spot signs that your tenant is subletting. While it may be a breach of the tenancy, it could also cause you problems for not declaring that you now have an HMO!
Not keeping up to date with the law
The legislation surrounding letting properties isn’t the most straightforward. Even if you have a grasp of it now, one of the biggest mistakes landlords make is not staying abreast of the changes. Hopefully, everyone is now well aware of the need to protect a deposit, but what about changes to electrical safety? How about changes to EPC ratings?
We’re also now awaiting some of the most significant updates to the legislation of all time. Landlords need to be ready for this and know exactly what all of the changes mean.
Going it alone
Another common mistake landlords make is thinking that they can do it all by themselves. They take on all of the responsibilities such as vetting tenants, carrying out checks and complying with the law, and then wonder why things seem to go wrong. Yes, it may cost you but this is exactly where a professional letting agent comes in. Any fee you pay is simply an investment in keeping your property running and ensuring that it's healthy.
By using our services, you can forget all about the common mistakes that landlords make. With us by your side, we can help your business flourish while keeping you on the right side of the law. Get in touch today and let us show you how.