Are you considering becoming a landlord? It can seem like a bit of a minefield but here we will take a look at the steps you’ll need to follow and whether it’s something you want to commit to.
Firstly, you’ll need to look at the costs involved versus the potential return. If you don’t already own a property then consider the expenses of buying one and preparing it for tenants and set this off against the potential income you’ll receive from renting it out. Two streams of income can come from renting and that’s the rent per month and the property value increasing. If the property decreases in value, your costs exceed your rent or the property sits empty for long periods of time, then you might find being a landlord is a medium to long range investment risk.
Buying a house will incur costs such as: valuation fees, stamp duty, legal costs and property surveys. Day to day renting expenditure includes things like: letting agent’s fees, redecorating, insurance, annual safety checks and building maintenance. You’ll also need to consider the costs involved if you’re not happy with the way tenants have left your property after moving out. For Commercial Cleaning Services Cardiff, visit http://www.cardiffcleaningcompany.co.uk/.
Understanding your legal responsibilities is also important.You need to provide new tenants with an Energy Performance Certificate, letting agent’s details and a gas safety certificate for each gas appliance. You are now required to protect a tenant’s deposit in a UK government approved deposit protection scheme. As a landlord you must ensure smoke alarms are installed on every floor and electrical devices have been PAT tested. You’ll want to access the property from time to time, just be sure to give plenty of notice to the occupants.
When it comes to decorating, it may not improve the value of your property much but can make it more attractive in a competitive market. Neutral is the best option and will go with any furniture and furnishings. A satin finish is easier to clean after the tenancy. Opt for a mid tone carpet that won’t show up the stains too much and don’t go super cheap otherwise they won’t last the professional cleaning that you’ll want done at the end of each tenancy.
If you’re supplying white goods then the minimum requirement would be washing machine, cooker and fridge/freezer. Providing a furnished property will attract quick rentals, are great for those on short term working contracts and will showcase your property well. Providing the basics means a sofa and side table in the living area, a dining table and chairs and a bed and side table in the bedrooms. Remember to create an inventory of every item that you are leaving in the property and go through this at the end of the tenancy.