Many landlords new to letting out property may not always be aware of the ways to save money but this is a business and every penny counts! Here are the landlordmoneysaving.com top tips on how ‘newbies’ can save money – but there’s helpful advice here too for established landlords.
Fears over pensions and the prospect of creating a reliable income is leading to more people investing in buy to let property but the reality is that this takes a lots of work.
The rewards can be huge but the mistakes can also be costly for landlords so these tips are geared to avoiding that scenario.
Carry out thorough tenant checks
This is the most basic of tasks that every landlord should undertake which will determine the tenant’s ability to pay. Do not just accept proof of employment or a right to work in the UK and you will need several months of bank statements to prove affordability.
Landlords ensure you are properly insured
Another basic mistake that newbie landlords make with buy to let property is not taking out specific insurance.
Standard household insurance will not cover a buy to let property so shop around and find a broker who understands the market. Be aware also that some insurers will not offer cover to properties with DSS tenants.
Some landlords may also be attracted to an insurance policy that pays out when tenants fall into arrears – these policies need careful examination particularly on what they will and will not pay out for.
Know your buy to let neighbours
Again, many established landlords will offer this tip since it can pay huge dividends. Get to know your buy to let neighbours because they will be your eyes and ears for any potential problems.
It’s also important to introduce yourself because your tenants may well have an impact on their lives. The investment in property is a business and because you won’t be there every day, it’s always wise to leave a contact number with a neighbour.
Carry out regular property checks
Following on from the previous tip, it is vital to carry out an annual property check to ensure that the property is being looked after by the tenants.
Indeed, many established landlords will carry out three or six months checks to ensure there are no problems with their buy to let investment and to help resolve any problems quickly.
Communication is key for buy to let success
Communicating with tenants on a regular basis will go a long way in preventing minor problems escalating into major ones and help to encourage tenants to look after the property properly.
It’s this communication which will also raise any problems such as issues with blocked guttering and damage to furniture, for instance.
Don’t forget too that in addition to an annual inspection, a landlord will also need to have the boiler and any gas-fuelled appliances checked yearly too.
Keep detailed buy to let records
Finally, a crucial tip that needs to be acted upon from the very beginning is to keep detailed records of all financial transactions and expenses. It may be worthwhile consulting with an accountant to ensure that all allowances are claimed and taxes paid.
Well-kept records will also prove that all legal obligations have been met and this approach will also underline how professional a landlord with a buy to let property needs to be.
These few tips will be surprisingly successful for all new landlords and there are lots of resources around to help them make their buy to let investment a rewarding one.
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