Guide to becoming an accidental landlord - Part 2
Cath, Assistant Lettings Manager, brings us part 2 in this 2-part series to help accidental landlords make their first foray into the property lettings industry...
Estimated reading time: 4 minutes.
In part 1 we highlighted the importance of accidental landlords fully understanding their financial stance as they embark upon letting out their property when they initially had no intention of doing so. In part 2, we consider things an accidental landlord should do in the next part of the process as they gear up to take their property to market and start earning a rental income.
Aside from being sure that letting your property will provide enough income to cover all of your landlord outgoings, the below will help ensure you market the property effectively, are clued up on the important things you need to know about and also have your tax situation under control.
Discuss your situation with local letting agents
As a new landlord you will have a huge amount to learn. Local letting agents can be a great source of advice and information, so make sure you utilise their expertise to the fullest. They will not only know all about rental properties and tenants in your local area, but they’ll also be up to date with all lettings regulations and legislation, so will be able to ensure you’re guided down the right path and keep everything you do above board and to the best of your ability to maximise your rental opportunities.
You should also consider the property management services that most letting agents offer, as this can take a huge amount of work off your plate making the entire experience far less stressful. From marketing the property, to sourcing suitable tenants, carrying out an inventory, checking tenants in and out, maintaining the property, managing the rental income, ensuring everything follows up-to-date regulation, and so much more. For the accidental landlord who wants a totally hands-off approach, a reputable local letting agent who you can trust are truly worth their weight in gold.
Read: Buy to let jargon explained - an A to Z
Learn all about letting legislation and regulations
Even if you choose to leave everything to a letting agent, it’s still well worth taking the time to make sure you’re clued up on existing regulations as well as any future changes to property letting legislation. Things change often, but information is always to hand online, so it’s easy to keep yourself connected. All it takes is a little time investment on your behalf every now and then to ensure you’re fully aware of any important upcoming changes.
Ultimately, as the landlord, it’s your responsibility to ensure the property is safe for your tenants. This is why being aware of fire, gas and electrical regulations is important, as well as what’s expected from you as the landlord when it comes to Energy Performance Certificates, tenancy deposit protection schemes, and much more. It’s also important to understand things such as what legalities exist around tenancy evictions.
Consider taking professional tax advice
Once everything is in place, all that’s left to do is to inform HMRC as you will be liable to disclose your rental income and pay any associated tax charges. Failing to do so can result in a tax penalty, and if you leave things too late, you could be in for a nasty surprise. Submitting a tax return each year is fairly straight forward, but with outgoings that you can offset, it may be worth taking professional tax advice depending on your situation, as it could certainly save you in the long wrong.
We hope this 2-part series has helped map out a plan of attack for homeowners who have been forced into letting out their property. The most important thing to remember is that with adequate planning and receiving appropriate advice and guidance along the way, letting out your property doesn’t have to be stressful or a financial worry.
To learn more about how our team of lettings experts here at CPS Homes in the heart of Cardiff can help you, don’t hesitate to reach out. We have branches across Cardiff as well as a wealth of knowledge and expertise when it comes to letting properties in this wonderful city. Get in touch today by calling 02920 668585, e-mailing enquiries@cpshomes.co.uk or by popping in branch to see us.
The information contained within this article was correct at the date of publishing and is not guaranteed to remain correct in the present day.
