Big mistakes that new landlords often make - and how to avoid them
Seeing the property as a home for yourself
Many people buy to let because they see it as a savvy business investment, but sometimes, the lines can get a little blurred. What if, for example, you buy a beautiful seaside property, and decide that you’ll rent it out for part of the year but also use it yourself as a holiday home? It can be tempting, but it’s rarely a good idea. You won’t get the income that you might be hoping for if it’s only available for certain periods, yet you still won’t be able to enjoy it as your own.
If you’re in the position where you’re not quite sure what you want out of the property, sit down and work through all the options. Talk it through with your family, if the decision could have an impact on them, and stick to your plans for a at least a year or two before you review what you’d like to do. They say that you should never mix business and pleasure, and this is very wise advice!
Overlooking important costs
So you might know that you could get £500 in rental income from your property, based on similar offerings in the area. That’s great, but it’s only the first part of the story. If you’re working with an agency you’ll have to pay a management fee, landlord insurance is essential in case of damages or wear and tear, and you need to consider cleaning and property checks and maintenance.
Of course, some of these costs are wise investments that you certainly shouldn’t neglect. For example, have you considered working with an inventory company? The service will give you extra peace of mind and ensure that you don’t come across any problems. If you’re looking for a great inventory company in London, get in touch with Ashworth Group.
Thinking that the whole thing couldn’t be simpler
A lot of people make the mistake of thinking that renting a property is as simple as placing a few adverts in the local press or on the internet, then sitting back and watching the rental income roll into their bank accounts every month. In reality, this isn’t the case. The list of things that need to be considered when you’re renting out a property can seem never-ending once you start looking at it.
There is plenty of help available, so you don’t have to struggle on your own. As well as using an inventory company, you might decide to hand over the management of the property to a letting agent. Though this will come at a cost, it could be very much worth it. You’ll benefit from the expertise of the professionals, and you’ll have someone to advise you whenever you run into problems.
Hopefully, this article has given you a feel for the things that you really need to think about when you’re first dipping your toes into the world of renting out your property. Get these bases covered, and you’re much less likely to experience any significant issues.