If you’re a first time buy-to-let landlord there are a number of important things that you need to know. To help you prepare, we’ve put together this guide offering handy hints, tips and advice on everything you need to know.
Taking out landlords insurance
As an owner of a buy-to-let property it is essential that you have adequate landlords insurance. The level of cover is entirely up to you and will depend on your personal preferences and needs. At the very least, your policy should include liability insurance that protects you in the case of tenants making claims for personal injury or property damage. Fire and flood is also advisable as emergency repairs can be incredibly expensive. Weather is also the UK’s largest culprit when it comes to home insurance claims so it pays to be covered! Accidental damage cover is a popular extra while rent guarantee insurance offers landlords complete peace of mind that the cash will keep rolling in. The fastest way to find the best deal is to use a trusted quote compare site such as Peacock Insurance.
Finding the best buy-to-let mortgage
If you’re planning on investing in a buy-to-let property you’ll need to make sure that you apply for the correct mortgage. Banks have started to crack down on non-compliant landlords over the past few years and will not hesitate to hand out fines to those that rent out a property on a personal mortgage. One of the fastest and most effective ways to secure the best possible deal is to enlist the help of a quote compare website. Simply enter your details and the search engine will come up with a variety of buy-to-let mortgage deals that best suit you individual needs. When you’ve whittled the results down to two or three options it’s always advisable to book an appointment with the bank and chat about the arrangement in person.
Complying with government regulations
Before renting out a property it’s critical that you ensure it complies with government regulations. You’ll need to commission a Gas Safety Certificate conducted by a Registered Gas Engineer. You’ll also need to do an electrical safety check and issue tenants with an Energy Performance Certificate. Furniture and furnishings must also pass official Fire and Safety Regulations.
Organise a deposit scheme
Did you know that in the UK, landlords are legally required to place any received deposits into a tenancy deposit protection scheme. Make sure you look into the various different third party providers before you get your tenants to sign a lease!
Write up a tenancy agreement
The final stage is signing on the dotted line. An Assured Shorthold Tenancy is the most popular choice and covers things such as length of contract, monthly rent, inventory and property terms and conditions. If you plan on renting your house out to three or more tenants forming more than one household you’ll need to ensure that your property complies with HMO regulations.
Being a first time landlord can be tough, but following these simple steps can get you on the right track in no time.