The 3 costly mistakes we’ve seen landlords make
Being a landlord in the UK comes with its own set of challenges and responsibilities. To ensure you a protecting your biggest asset, income and that you pick the person who is going to take good care of your home, it is crucial to avoid common mistakes that can lead to losses and legal complications.
In this blog, we will discuss the top three costly mistakes we’ve seen landlords make and how best to protect yourself.
Lack of protection on the rental income. Comprehensive tenant screening is a must, as it’ll help avoid moving someone to your home who causes damage, fails to pay rent, or even engages in illegal activities. A comprehensive referencing will not only help identify major red flags, but with a passed reference it should allow you to take out rent guarantee, which is something worth considering for peace of mind. These types of insurance vary depending on the provider, but in essence, they should pay out the rental sum in the event the tenant defaults. Even the best tenants could lose their jobs, especially in the current climate.
I was recently speaking with a landlord whose tenants stopped paying rent, so she was having to evict them. Fortunately, she had a good policy in place, that paid out in the region of £15,000 meaning she could keep up with the mortgage payments. Without this policy, it would have been a completely different story.
Neglecting property maintenance is another costly mistake that landlords often make. Failing to address maintenance issues promptly can lead to more significant problems and potential legal liabilities. To avoid this, landlords should follow these best practices:
1. Regular Inspections: Conduct regular inspections to identify any maintenance issues or potential hazards. Address them promptly to prevent further damage and ensure the safety of your tenants. As part of Mortlock & Joyce’s service, we will carry out two checks a year as part of our fully managed service to help identify any issues.
2. Prompt Repairs: Respond to tenant maintenance requests promptly and address them in a timely manner. Ignoring or delaying repairs can lead to tenant dissatisfaction and potential legal consequences.
3. Establish Maintenance Protocols: Create a maintenance schedule and establish protocols for routine tasks such as yearly boiler service and plan, gutter cleaning, and pest control. This proactive approach can help prevent costly repairs in the long run.
Not knowing all the compliance and legislation. It’s a minefield out there, with around 168 lettings legislation that needs to be followed. Landlords who fail to comply with regulations can face financial and legal consequences.
1. Stay Informed: Keep yourself updated with the latest landlord-tenant laws and regulations in the UK. This includes understanding your responsibilities regarding safety certificates, deposit protection schemes, and eviction procedures. If you’re a first-time landlord and aren’t confident in keeping updated with all of this, then it could be a good idea to consider using a high-quality letting agent.
2. Use Written Agreements: Always use written tenancy agreements that clearly outline the rights and responsibilities of both parties. This will help protect your interests and ensure a smooth tenancy.
3. Seek Professional Advice: If you are unsure about any legal aspects or find it challenging to navigate the complexities of landlord-tenant laws, consider seeking advice from legal professionals or joining landlord associations for guidance and support.
Being a landlord can be a successful and profitable investment and you are not short of choices for letting agents nowadays. We don’t work on volume like larger companies, so if you like the idea of a more personable approach, where you have one point of contact and no call centres (but instead our mobile numbers) to help walk you through what can be a complicated process, then we’d love to speak with you.
