Landlords – four common mistakes

The property market has made an impressive recovery after a seven-week shutdown, buoyed by the stamp duty holiday and other initiatives that are encouraging people to move home once again.

So much so, that recent studies have shown the number of new tenancies has almost returned back to pre-pandemic levels as activity continues to spike.

While this surge in demand is more than welcome for landlords, there is always a risk of succumbing to some of the mistakes made in the lettings sector.

Luckily, here at Angels Sales & Lettings, we list the most common landlord mistakes and how you can successfully avoid them.

Not treating your buy-to-let as a business  

Many people see being a landlord as a hobby with a nice little second income, but you should really be treating it as you would a business.

This means doing your research, ensuring you are charging the right rents and, most importantly, getting reliable tenants who will stick to their rental agreement, treat your property well, pay you on time and hopefully stay for the long-term.

You should also have contingency plans for every eventuality – for example, in the case of a void period or other unexpected costs. No matter how hard you try and avoid it, you may also have badly behaved tenants who cause damage to your property and might need to be evicted.

Being prepared and flexible – and making sure you can cope with any financial issues – will help give you better peace of mind.

Neglecting your legal obligations 

As a landlord, you have a legal obligation and ‘duty of care’ to keep your tenants safe. 

You must get a gas safety certificate, as well as ensuring that all furniture meets fire safety standards and all electrical equipment and plug sockets are safe for use.

Additionally, you should give your tenants an Energy Performance Certificate before they move in, showing them how energy efficient your property is.

Of course, these are just a few of many legal obligations landlords have to meet. Failure to comply with these measures could lead to hefty fines and penalties, so it’s best to be prepared from the offset.

A lack of investment in your property 

Tenants aspire to live in an attractive and well-cared for home, so you should redecorate and make improvements to your rental property the same way you would your own home.

Regular upkeep and carrying out repairs promptly and efficiently will certainly keep your tenants happy, which is an all-important job for landlords.

Everything in a property has a lifespan and will require replacing, maintaining or repairing at some point, so it’s important to act quickly rather than letting the problem steadily worsen.

Once again, you need to make sure you can afford regular investment in your property before committing to being a landlord.

Thinking a rental property will be a huge money-maker 

This is arguably the biggest mistake the majority of landlords make. While there are examples of people making their fortune from renting out property and those that make a good living from it, rental property is not a one-way ticket to being a millionaire.

It takes a lot of hard work and you only get out of it what you put in, and you won’t suddenly build a property empire overnight.

Ambition is admirable, but it’s always best to keep things in perspective with a healthy dose of realism.

Here at Angels Sales & Lettings, community is more important than ever during these extraordinary times, and you can find out more about the work in our local area here.

For more information on how we can help you to buy, sell, let or rent in Enfield and the surrounding areas, please give us a call on 0800 043 6778.

We also offer a free and instant online valuation so you can get an idea of how much rent you can charge per month.

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