It seems as though the world and their wives are all looking to getting into the private rented sector right now, especially as it can provide a great source of income. However, not everyone has the time or skills to become a landlord, and yet at one point can find themselves having to let out a property. This is what we call ‘accidental landlords’, and for some finding themselves in this position can be quite stressful, so here are four pieces of advice to make things that little bit easier:
Face the Situation
Many people aren’t happy being labelled with the term ‘accidental landlord’, either because they are taking the role seriously or because they don’t consider themselves to be a landlord in any way, shape or form. However, the fact of the matter is that if you didn’t plan to get into the landlord business then you need to admit this and then start to think about what knowledge you are truthfully lacking when it comes to letting out a property. For example, you may not know the first thing about marketing a property, or what duties you have to carry out as a landlord by law. Luckily, there are a number of ways you can find out more about the private rented sector, such as reading specialist magazines, talking to your local authority or even joining a landlord association!
Act like a Professional
Even if you are not exactly enamoured at the fact that you have become an accidental landlord that doesn’t mean you should behave anything less than professional. This means that you need to treat your tenants like any other landlord does – don’t forget that this is their home so have some respect for their needs and concerns. At the same time you should make some time each week to look over your business and make sure everything is in order, such as organising maintenance, sorting out paperwork and even doing research into the market. Who knows, you could find yourself really enjoying it and becoming an excellent landlord!
Know the Laws
When it comes to being a landlord there are a number of legislations you must adhere to otherwise you could find yourself losing money. For example, all landlords must ensure that their properties have Energy Performance Certificates, are fitted with fire alarms in each floor and are covered with landlord insurance. Furthermore, you should make sure you understand what you are expected to pay when it comes to taxes, especially as under new rules even if your property is left unoccupied you will still have to pay council tax after the first six months. Each year you will also have to fill in a self-assessment tax form, and if you have never done this before it is advisable that you research how to do so a few months before the deadline. Don’t forget if you are late you could end up having to pay a hefty fine!
Admit Defeat
If the paperwork is piling up, you are confused by all the changes currently happening in the private rented sector or you are finding it impossible to find a tenant for your property it may be time to admit defeat. This isn’t necessarily a bad thing however – admitting your faults means that you know that something should be done better and are happy to find a way for this to happen. This leaves you with a number of options; if you just struggle with one aspect of being a landlord such as accounting then you can hire an accountant for a couple of weeks each year. However, if you are becoming stressed and dreading the thought of your tenants calling you then it may be time to find a letting agent in your area. Letting agents have the time and experience most accidental landlords do not, and so will be able to manage your property as well as give you advice if there is anything you are confused about. Even though you have to pay for their services the amount of time and stress you will save is definitely worth it, and you will still get some extra income each month!
Being an accidental landlord is not always a bad thing, especially if you make a good amount of money. However, being a landlord is something that requires a lot of effort, so make sure you ask for help if you need it!
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