Becoming a landlord can be an extremely rewarding move, both financially and on a personal level, but being a successful landlord requires an understanding of the key factors behind letting out a property. Indeed, a failure to understand these issues can mean you end up getting things wrong and seeing your investment backfire. First and foremost, it is important to take out landlord insurance to protect this investment. Shopping online is a great way to purchase landlord insurance as you can compare landlord insurance policies before buying, including features and prices, to ensure that you track down some of the best deals out there for your requirements.
Under the Landlord and Tenant Act (1985), landlords have a legal responsibility to make sure that health and safety measures are up to standard in their buy-to-let property, in order to keep their tenants as safe as possible. However, even where precautionary measures are taken, there is always a risk that something could happen to your tenants – in the event of a fire, for example. Landlord insurance can protect you and your tenants should any unfortunate and unforeseen events occur. Taking out a suitable landlord insurance policy could potentially save you a great deal of money down the line should a tenant make a claim. There is a range of insurance options to choose from and many landlords tend to take out multiple insurance policies such as buildings insurance, contents insurance, landlord’s liability insurance and legal cover insurance.
Successful landlords tend to know their target market and know it well before they start renting out their property. Be sure to undergo sufficient research prior to letting out your property and base your next moves on these findings. For example, it is important to make note of the rental prices that similar properties to yours in the same area can command and how quickly they are getting scooped up. If they are still available after some time on the market, this may be a sign that the landlord has priced it too high and so you should perhaps price yours slightly lower to maximise your chances of success. In addition, if you are considering using a letting agent to help advertise your property, be sure to research the different agents out there to ensure that you are getting the best deal for your money.
Finally, arguably the most obvious way to prepare your property before letting it out is to ensure that it looks as attractive and welcoming as possible. It is no surprise that the nicer your property appears both inside and out, the higher the rental value you may be able to charge.