Tips for first-time landlords
Posted by Jayne Codling
Taking out landlord property insurance is one several things those becoming a landlord for the first time should consider, the National Landlords Association (NLA) has said.
According to the organisation, falling house prices along with soaring rental yields means that renting out a property rather than selling it in the current climate is becoming an increasingly attractive option for many.
And with house prices predicted to plunge even further in 2012, this could be a trend that becomes ever more widespread.
"If house prices fall this year, we may see more homeowners who were planning to sell instead considering letting their homes while they wait for the market to stabilise," said David Salusbury, chairman of the NLA.
"There are currently a record number of people searching for rental properties, meaning would-be landlords would have no problem finding a tenant."
However, while entering the lettings business could prove a lucrative move, there are a number of important considerations first-time landlords need to make.
"Letting a property can be a rewarding experience and an effective way of providing additional income, but prospective landlords will need to remember they are effectively starting a small business," said Mr Salusbury.
"They must ensure they are well aware of the rules and regulations governing the letting of private residential accommodation."
As well as seeking buildings insurance for landlords, those renting out a property will also need to ensure they ensure they provide a proper tenancy agreement, outlining the length of the tenancy, amount of rent, when it is to be paid, and deposit details.
They should also protect the tenant’s deposit with a government-authorised scheme and have gas appliances checked annually by a Gas Safe registered engineer, providing the tenant with a Gas Safety Certificate, the NLA advised.
It follows a recent survey of landlords by the organisation which revealed that average rental yields now stand at 6.7 per cent.
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