The house market in the UK has been a nightmare for quite a time now. The mini-budget has been inflicting horrors on the economy that are far from anything ‘mini’. Landlords come under this umbrella as well, and the erratic interest rates, accompanied by unforeseen house prices, have been posing a challenge as supply fails to meet demands.
Interest rates are growing at a fast pace and are about to rise to 3.5% by next week due to the UK’s soaring inflation. As a result, property owners and would-be potential property owners everywhere are feeling the pressure. The rental market is unstable, and thus you should be extremely careful if you are a new landlord. Berkhamsted letting agents will be your best shot at avoiding regretful decisions in an unpleasant economic condition. Read on to know the five mistakes you must avoid while letting a property.
1. Hasty tenant checks
Understandably, you would want to rent your property at the most favourable rate offered, as the economy currently demands it. Tenants are in haste to secure property and will probably offer prices much more than you expect, but haste is something landlords should particularly avoid. You will most possibly get more tenants as the demand for rental houses is tremendously high, but if you fail to do a proper tenant check in haste, you will have to suffer in the long run. Securing a good tenant is equally essential as securing a good amount is. Getting references and running credit checks can be a significant nuisance. Nevertheless, you must avoid this common mistake that will likely result in major troubles in the future.
You should obtain multiple references as well as credit reports. In addition, it is required by law that you investigate the immigration status of any prospective tenants.
2. Not following the tenancy agreement
Both the tenants and the landlord are protected under tenancy agreements. It is morally and legally proficient to act according to agreements. You need to be well-versed in your tenancy agreements and when in doubt, double-check them before taking any action. Make sure you comprehend the terms of the leasing agreement because it outlines your rights and obligations. This aids in determining if your renter is making fair demands or violating the terms of the lease. You are shielded from disciplinary actions, such as fines and criminal prosecution.
3. Not doing frequent property checks
Frequent inspections of the house and the premises should be considered while drafting the tenancy agreements. Property inspections are facilitative for spotting issues early on. For instance, a minor damp issue or leak is simple to address, but it may cause an extensive disturbance if ignored. Some of the most concerning issues for residents of South East London are the weak built of houses caused by years of untreated creaks, windows with cracks, faulty drains, and black mould. Additionally, you get a glimpse into how the tenant is maintaining the property as required. You may also verify if there is any subletting taking place.
4. Being unaware of the trends in the market and legislation
There are numerous laws and regulations to be aware of while lending a property. Legislation is frequently revised, improved, and altered. To avoid being in unwanted situations, you must regularly ensure that you are informed about new legislation as well as changes to the existing legislation. Maintaining your familiarity with the numerous laws requires a lot of work, but it is one of your legal obligations as a landlord.
Along with being up-to-date with the legislation, keeping a check on the house market prices ensures that you receive the best end of your tenancy deal.
5. Not comparing insurance policies
The cost of upkeep, letting agent fees, and insurance products like landlord insurance are all being impacted by inflation. As a result, many landlords could feel compelled to handle maintenance tasks whenever feasible, which could result in more problems. Landlords should compare landlord insurance policies in order to get the efficient deal on comprehensive coverage.
Being a new landlord is thrilling since it can increase your income, which is much needed in today’s inflation era. However, it also means complexities and perplexing procedures. Getting in touch with our reliable letting agents will save you from these ordeals.