It is always a pleasure to meet new landlords - especially in today's climate, where all the talk is doom and gloom. It is important to hear about the mass exodus from the sector or uncertainty around regulations, tax burdens and the energy and cost-of-living crisis. However, that's not what I'm covering today!
Instead, I want to examine what makes a good landlord great. No matter whether you are starting out on your property investment journey or are an old hand - there are ways for you to get off on the right foot.
And for all the agents out there - this article doesn't exclude you. For new, part time, and retiring landlords, nothing beats a first-class agent who follows the principles below and understands what good looks like.
I was first asked to provide my top tips to Paul Shamplina, which he incorporated into his How to be a Total Landlord seminar at the National Landlord Investment Show at the Old Billingsgate Market in London.
It was great to be there. We had only recently released the results of our Property Redress Scheme Survey and I was gauging the sentiments of the industry and was keen to see if the results resonated on the ground. They did - but I also noticed so much optimism and resilience from everyone around.
The seminar session Paul held went down a storm and was packed with standing room only! I must say this bodes well for the sector. The enthusiasm and commitment of the next generation of great landlords gives us all hope for a bright future in our fantastic industry.
So - without further ado - just for you here are my dozen dos and don’ts:
Letting property is a business and you should be professional. You need a business plan, clear objectives and a financial accounting plan.
Very often, landlords look for a tenant who they think will pay the most rent. Of course, taking a tenant that does not meet your financial criteria is not sensible. You need to check the tenants thoroughly by robust referencing.
However, you also need to ensure that you have the right tenants for the property. Sticking five students in a quiet residential area will not be good for them or for your neighbours.
Remember - do not panic with a void, because the wrong tenant will cost you more.
The regulations may feel like bureaucracy or unnecessary red tape. However, if you fall foul of them, it will cost you dear. It won't just put you out-of-pocket - you could even end up breaking rocks in the local penitentiary if harm comes to your tenant.
But don't panic! Safety is key. Keep your property safe and secure and always find out what you don’t know to put things right.
The whole tone of your tenancy is set from day one - so make it the best it can be. Provide all the relevant information and answers to their questions. Remember the little things - like instructions on how to use the heating, washing machine, or cooker. Make sure a full robust inventory is done.
Small touches, such a loo roll or cleaning products make the difference and can be easily bought for very little. "Welcome to your new home" cards or small gift sets also get things off to a flying start. You could even provide a welcome pack with details of local facilities.
The tenant will remember these gestures and you will bank a lot of good will.
Your tenancy agreements should be specific to your property and to your tenants. You should ensure that you have a professional personalised tenancy agreement, which is fair and legal. There is even an official Government one you can use as a base.
If you are managing a property yourself, then you need to be available, approachable and alert. Remember, being a landlord is a 24/7, 365 day a year job. And no, you do not get a leap year off!
If you cannot commit to this - and frankly, who can? - you need to find a service to cover you for when you are not there, or use an agent.
Ensure you have robust timescales and stick to them. Know what your repair obligations are. Ensure you communicate with the tenants, and give them the correct notice. If your tenant reports a repair issue explain what it entails and ensure you manage their expectations.
Ensure you have the right protections and covers in place. Protect your property with the right and up-to-date landlord insurance. In this period of inflation, it is easy to be under-insured so make sure the cover is index linked.
Protect your income and your tenants by ensuring you have legal cover. Take out robust rent guarantee insurance and legal expenses for the worst-case scenario. Check all your warranties are in place and valid for a rental property.
Yes, as with all insurance policies, it seems to be more added expenses. That is, until you need it. Then it is the best money you could have spent.
Whether it's arrears or antisocial behaviour - make sure you're aware and on top of it. However, if things look like getting out of hand call in the experts.
At Property Redress Scheme, we run a professional mediation service. We also have Landlord Action, a regulated legal firm as part of our group.
Quiet enjoyment means you leave them in peace and do not go around to hassle them or check up on them unnecessarily. Of course, make sure you do regular inspections and servicing. However, make sure these are proportionate and as painless as possible.
A good tenant is worth keeping, so go above and beyond the service they expect. Rightly, you have to be sensible and practical. But it's worth its weight in gold if you can provide facilities - such as quality white goods or broadband, or anticipate a tenant's needs.
Where practical, consider allowing pets and also be mindful of the tenant’s energy costs. Install a smart meter, if possible and ensure the property meets as high an energy standard as you can. Remember, many tenants are green minded and will pay a premium.
Being a landlord is tough and challenging, but really rewarding if you do it right. Not just financially but also personally. Each day is different and the satisfaction of providing a high-quality home for another person or family cannot be beaten.
However, make time for yourself and surround yourself with the right expertise and help. The secret for many a successful landlord is to partner up with a really good agent who with your perfect tenant is the golden triangle of property letting.
Even then, keep yourself educated and skilled. You will be amazed how much training and assistance is out there, a lot of it free or at very little cost!