Landlord
Having a rental property can be an exciting business venture and it can be rewarding and profitable. But managing a rental property is not as easy as you think.
Perhaps you have saved up a down payment to buy your first rental property and hope to make your investment grow over time or to add your stream of income. If you are thinking of purchasing a buy-to-let property, here are some things that should be considered when weighing in your options - DIY property management vs hiring a professional property management company in London.
Knowledge and Experience
If you have rented a house or flat at some point in your life, you probably have some idea about what property management is about or maybe you have seen movies of characters as landlords.
For long-time landlords, it can be easier to manage a rental property since they already know the process of renting out the property, the laws, and regulations, how to keep the tenant happy, and maintaining the property. On the other, for a new landlord in London, it can be overwhelming – with a list of what to do.
And if there is no experience in the real estate industry, doing DIY property management can be time-consuming and extremely frustrating, and challenging. You have to research the laws in your area about renting your property. Moreover, it can be a trial and error method when it comes to managing your rental property as you still have no experience.
While when you hire a professional property management company in London, it has the experience and knowledge when it comes to property management. But it is important that when you consider a professional property manager in London, go for a local property management company because they have the knowledge in the area and moreover, they have the local network connection to vendors that can help boost the value of your letting property in a long run.
Balham is one of the most coveted places in the southwest of London. It has fantastic transport links. And with its vibrant neighborhood, and a fantastic array of restaurants and bars, no wonder that Balham has become of the hotspots in London when it comes to properties.
Buy-to-let properties are excellent opportunities for landlords in Balham to earn passive income. It is also a valuable investment.
But being a landlord is not as easy as you think it may seem. Landlords in Balham have a specific set of obligations to their tenants. They need to ensure that everything is on the right track during the tenancy. There are plenty of rules and regulations that Landlords must stick with. There are many responsibilities that landlords should know before the tenant moves in, during the tenancy, and even after the tenancy.
If you are a first-time landlord in Balham or want to refresh your knowledge regarding your obligations as a landlord, this article will provide answers to the question “What are my responsibilities as a Landlord in Balham?”
Right to Rent
It is a government policy that requires landlords to check the immigration status of the tenant. This means the landlord shall check if the person or people can legally rent and live in the UK.
Tenants will have to provide copies of their original identification and visa to the landlord. And the landlord must record the date when the copies were done.
And there should be a follow-up check that should be done to ensure that your tenant can still rent the property in Balham if their permit to stay in the UK has a time limit. It should be done 12 months after the previous check. But if there is no time limit for your tenant’s permit to stay in the UK, you don’t have to make a follow-up check.
Tenancy Agreement
The tenancy agreement is a legally binding contract between the tenant and the landlord regarding the tenant’s right to live in the rental property and the landlord’s right to receive rent.
Landlords should issue tenancy agreements that are up to date. The tenancy agreement must be fair and compliant with the law. According to the guidelines of the government, the tenancy agreement must include the following:
· the names of all people involved
· the rental price and how it’s paid
· information on how and when the rent will be reviewed
· the deposit amount
· how the deposit will be protected
· when the deposit can be fully or partly withheld, for example, to repair damage caused by tenants
· the property address
· the start and end date of the tenancy
· any tenant or landlord obligations
· which bills your tenants are responsible for
Other information may be included in the tenancy agreement such as if the tenancy can be ended early and the process, the responsibilities of the minor repairs, and whether the property can be sublet to someone else.
Gas Safety
If you are a landlord in Balham, it is your responsibility as a landlord to make sure that all gas appliances installed in the buy-to-let property, fittings chimneys, and flues are safe and working well.
There are three main legal requirements for a landlord when it comes to gas safety:
Gas Safe Checks
It is required that all gas appliances and flues in the property should undergo an annual gas safety check by a registered Gas Safe engineer.
Gas Safety Records
A copy of the record of the check is required to be given to your tenants and it should be given within 28 days of the gas safety check. And for new tenants, the record should be provided at the start of the tenancy.
Maintenance
As a landlord, you must make sure that all the gas pipework, appliances, chimneys, and flues are kept in a safe condition.
EPC (Electrical Performance Certificate)
By law, all rented properties are required with EPC. This is to measure the energy efficiency of the property. The check is done by an electrical engineer.
It is needed whenever the property is rented, sold, or built. Landlords in Balham must order an EPC for tenants before letting the property.
The minimum rating requirement of the property is E.
Smoke and Carbon Monoxide
It is required by the regulation for private rented sectors in the UK that landlords must install one smoke alarm on every story of their rental property. A carbon monoxide alarm should be installed in any room where solid fuel is used.
And landlords must make sure that the alarms are in order before the start of a new tenancy.
Furnished Properties
Landlords in Balham that are providing furnished properties should make sure that the furniture they are providing met the Furniture and Furnishing regulations for fire resistance.
Landlords should confirm with the manufacturers if the items are fire-resistant if they could not find the label attached in the furniture’s stating that they are fire-resistant.
Electrical Installation Condition Report (EICR)
Balham landlords must obtain electrical installation condition reports for their rental properties. It is a legal requirement that applies to all tenancies new and existing.
The inspection is done by a qualified person and a competent person. This inspection is done to make sure that electrical safety standards are met – finding potential electrical hazards, identifying defective electrical work, detecting lack of earthing, and other electrical problems.
EICR has a validity period of 5 years.
Security Deposit
A landlord must put the tenant’s deposit in a government-approved tenancy deposit scheme If the property is on an assured shorthold tenancy.
But if the landlord has not let the property on an assured shorthold tenancy, the landlord can accept valuable items such as a watch or car as a deposit instead of money. The items will not be protected by a scheme.
Bluestone Properties
At Bluestone Properties, we take care of the many responsibilities included which can make your life easier as a landlord in Balham and so you can enjoy your passive income.
Need our help? Call us on 0208 355 3405 or contact us.
