The main goal of being a landlord is to maximise the profits you receive from all your rental properties. However, many inexperienced landlords find out the hard way through a complete lack of knowledge and understanding of what to do and not what to do.
Here are the 7 landlords mistakes that all landlords should avoid making.
1. Being a landlord as a hobby
This is usually most common with accidental landlords and those with few properties – treating 'landlording' as a hobby or pastime. A rental property is an investment, thus being a landlord should not be treated as a hobby, instead, it should be treated as a business.
You’ll need a plan of action to make things run smoothly. Remember that if you are going to be in business, be efficient.
2. Failing to perform correct checks on tenants
It can be understood that for any landlord, you would want to get a tenant quickly and start getting cash, but certainly, it is not advisable. It is important to make necessary checks on tenants in order to avoid financial damages and getting problems with the authority.
It is important that landlords must run checks on all new tenants to prove their immigration status. Failing to do so, a landlord will be liable with a penalty of up to £3,000.
3. Failing to run the numbers correctly
Being a landlord is not only about being optimistic, but it also requires being realistic. It is important to calculated things correctly so that you would avoid being a in horrible financial situation.
Things such as not taking costs into account, overestimating the rent, and thinking that the rental property will be occupied all through the years.
4. Failing to do property inventory correctly
Property inventory is crucial for a landlord. It protects both landlord and tenants and will indicate the condition of the property before the tenancy and when the property is returned in.
In the event where the tenant caused destruction to the property and refuses to take responsibility, the fate will be assessed by an adjudicator. It is important that the landlord has the evidence to provide. Without property inventory, it would be extremely difficult to know the difference before and after the tenancy.
5. Not checking the property frequently
One of the most common problems is sub-letting. Many landlords do not check their rental property that often. A regular check will prevent issue such a sub-letting as well as minor property problems such as damp or leaks. When such problems are spotted early, it will prevent these issues to turn into more major property problems.
6. Failing to get the right vendors
Several landlords will go out of their way to look for the cheapest vendor to save as much money as possible. Although this may seem like a good idea at times when landlords try to look for the cheapest vendor, they end up wasting time that can lead to an unsatisfied tenant. Repairs must be done efficiently and properly because it will also go a long way in retaining good tenants.
7. Not having the right people
Being a solo landlord can be overwhelming especially if you don’t have yet enough experience with landlords.
If you’re not good with figures, having an account will serve you well. Having no idea about the letting law in the area or vendors to do the repair can sometimes be exhausting.
Thus, it is important to seek out the right people. Having a high-quality letting agent and property management company will take the burden for you.
If you’d like to find out more about how Bluestone Properties can help you avoid all these mistakes and more, give us a call on 0208 355 3405
BLUESTONE PROPERTIES
Bluestone Properties is a property management and letting agency in south west London. We provide services in south London and surrounding areas. Get it touch with us.
