Top 10 common mistakes made by landlords and how to avoid them

Top 10 common mistakes made by landlords and how to avoid them

If you’ve decided to rent your property, it’s important to remember that there are lots of things to consider. As well as balancing the tenant/landlord relationship, there also a number of legal requirements that have to be abided by. There are various things that can go wrong so we’ve decided to highlight the most common pitfalls of renting and how to avoid them.

1. Ignoring your tenant’s requests

While it may be a business transaction, it’s important to remember that you can still have a friendly relationship with your tenant. Some of their requests may be unreasonable but remember that spending a little money should keep them happy. A happy tenant makes for a happy renting process. Plus, if they feel that they’re receiving respect from you, they are more likely to respect the property.

2. Not providing appropriate furniture

If you are letting a furnished property, you are more likely to attract higher-paying tenants if the furniture is nice. Plus, you’re also required by British law to ensure that all furniture is fire resistant. If the furniture is not fire resistant, this is illegal and you could face a fine.

3. Not refreshing the property

One of the most common complaints that tenants have, is the landlord not refreshing the property. A simple paint job is easy to carry out at the beginning of each tenancy and makes all the difference.

4. Not knowing your landlord responsibilities

While securing a tenant is a massive job, your work is far from over. Not only do you need to meet the tenancy agreement but you also need to check in with your tenants and the property, carry out maintenance and respond to requests. Keep on top of any problems and if you’re away on business or don’t live in the UK, consider getting a professional property management company involved. It is also a requirement for rental properties to have a minimum energy efficiency rating of E. If your property fails to reach this, you could be banned from letting the property.

5. Disregarding health and safety

If you’re not living in the property it can be easy to forget to carry out all the necessary checks – but if not done, you run the risk of penalties. A gas safety certificate must be obtained every year and fire alarms and carbon monoxide detectors must also be installed.

6. Not staying up to date with the current market

Remaining up to date with the local property market is crucial to a successful let. Get to know the local area and check out competition. Your target audience may change and it’s important to ensure that your property suits certain demographics. This will help you to estimate the ROI for your rental property, allowing you to predict your monthly rental income.

7. Not carrying out tenant checks

While you may be desperate to find a tenant, carrying out those all-important checks may save you in the long run. When considering someone, look into their work history, previous references and run a tenant credit check. It’s important to check whether the potential tenant has missed any previous payments or caused any damage.

8. Not being prepared for maintenance costs

As a landlord, it is crucial that you provision for maintenance. Not only can this be costly but it can also happen at any time. Plus, your property won’t always be occupied so you need to be wary that there’ll be some months without a rental income. Create a budget and track your expenses to ensure that you can cover any potential costs.

9. Not treating it like a business

From securing a tenant to carrying out maintenance, renting a property is a huge commitment. While many landlords choose to rent properties alongside a full-time job, your rental property is a business and needs to be managed effectively. Accounting software will help organise your finances and documenting all communications will also create a smoother process.

10. Not taking advice from others

Getting in touch with other landlords or using the help from a local estate agent can be a great way to ensure you’re getting the most out of your property. Educate yourself and liaise with other professionals. Consider joining national and local landlord associations and be mindful to keep up to date with changing rules and regulations.

Being a landlord may have many benefits but there are also many factors that you need to remember. Whether you have one property or 11, it can be a profitable process but could also cost you thousands if you stumble into some common pitfalls. If you’re looking to let your property or have any questions, get in touch with Cassini Properties Estate and Lettings today.