Renting out your house is a great way to make a steady, passive income. But becoming a landlord comes with a steep learning curve, and isn’t something to dive into recklessly.
There is a lot to learn about letting a property, from your legal responsibilities to the costs involved. It’s important to do your research to ensure your experience is as successful and stress-free as possible.
At 53 Degrees Property, we have years of experience managing and letting property around the country. In this guide, we’ll cover five of the most important things you should know before becoming a landlord (UK). We’ll also discuss how our guaranteed rent service can make your life easier.
If you want to let a property in the UK, there are many landlord responsibilities you must follow. You should have a thorough understanding of these before you start the process of finding tenants. If you break any regulations, you could face fines or even prosecution.
Legally, to rent out your house, you must:
There may come a time when you need to ask a tenant to leave. For example, if they have damaged the building or stopped paying rent.
When this happens, you must follow the legal eviction process. This may involve applying for various court orders, and potentially a warrant of possession. Depending on the circumstances, evictions can take anywhere from a few weeks to a year or more. It’s important to be aware of this possibility and choose your tenants carefully.
If you rent out property through a guaranteed rent company, you won’t have to worry about problematic tenants or evictions. They’ll take care of everything for you, from advertising the property to dealing with any problems that arise.
1. You Have Legal Responsibilities as a Landlord
If you want to let a property in the UK, there are many landlord responsibilities you must follow. You should have a thorough understanding of these before you start the process of finding tenants. If you break any regulations, you could face fines or even prosecution.
Legally, to rent out your house, you must:
- Provide your tenants with an up-to-date Energy Performance Certificate (EPC)
- Ensure all gas and electrical appliances meet safety standards
- Maintain the property and ensure it is free from health hazards (e.g. damp and mould)
- Follow all fire safety regulations, including fitting smoke detectors and carbon monoxide alarms
- Protect your tenant’s deposit in a government-backed tenancy deposit scheme
- Issue a ‘How to Rent’ guide to your tenants and check that they have the right to rent in the UK
2. You Must Be Available 24/7
When you become a landlord, you become responsible for ensuring your property is habitable at all times. This means dealing with emergencies and maintenance issues as and when they arise. You must be prepared for your tenants to contact you 24/7, every day of the year. Major problems, i.e. anything that could endanger the tenant’s health and safety, must be repaired within two weeks. For example:- Electrical faults
- Issues with plumbing, heating, hot water and sanitary fittings
- Faulty gas appliances, pipes, flues and ventilation
- Severe pest infestations
- Damage to the structure and exterior of the property
3. Being a Landlord Can Be Expensive
Renting out property can significantly boost your monthly income. However, you may be surprised by the costs associated with private lettings. As well as maintenance and repairs, a significant portion of your rental income will go towards landlord insurance and building insurance. If you ever take your tenants to court (e.g. for unpaid rent), you’ll have to cover court fees and legal costs. You’ll also need to pay income tax on any profit you make, which may vary according to your tax band. If you hire a letting agent, they’ll also charge a fee for their services. It may be cheaper to work with a property management company who will sublet your home and maintain it for you.4. You May Experience Void Periods
A key piece of advice on becoming a landlord is to learn to anticipate and deal with void periods. Void periods are stretches of time when you do not have any tenants living in your rental property. This means, of course, that it won’t be generating any income. Unfortunately, void periods are unavoidable when renting out property. Tenancy agreements come to an end and it often takes time to find a new occupant. You should factor this into your budget and make sure you have an emergency fund in place for those unexpected months with no rent. Alternatively, you could look into a guaranteed rent scheme. This will ensure a fixed income every month, regardless of whether or not the property is occupied.5. Evicting Problematic Tenants Can Take Months
There may come a time when you need to ask a tenant to leave. For example, if they have damaged the building or stopped paying rent.
When this happens, you must follow the legal eviction process. This may involve applying for various court orders, and potentially a warrant of possession. Depending on the circumstances, evictions can take anywhere from a few weeks to a year or more. It’s important to be aware of this possibility and choose your tenants carefully.
If you rent out property through a guaranteed rent company, you won’t have to worry about problematic tenants or evictions. They’ll take care of everything for you, from advertising the property to dealing with any problems that arise.
Avoid the Hassle of Private Lettings with Guaranteed Rent
There’s a lot to learn about being a landlord, and it’s not for everyone. Fortunately, there is a way of renting out a property without all the stress and financial risk. At 53 Degrees Property, we specialise in guaranteed rent – offering landlords a secure, risk-free income with none of the hassle. We’ll professionally let and manage your property for up to 5 years while you receive a fixed rental income. Your rent is guaranteed every month, even during void periods. What’s more, we’ll even handle the cleaning and maintenance for you. To find out how much your property could be worth, contact 53 Degrees Property today. Fill in our online form or call us on 0330 058 0165 to speak to our helpful team.Get a FREE Guaranteed Rent Valution
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