Landlords should ask key questions before committing their property to tenant
Published by Sarah Ashcroft
Becoming a landlord is not something people should rush into at any time without first giving it some serious thought. In fact, if it is to be done successfully, it will be the combination of many factors coming together and several boxes being ticked.
Chris Norris, head of policy at the National Landlords Association, has written a piece for the Financial Times in which he sets out a number of vital questions anybody should ask themselves before they rent out a property.
For starters, one of the most important issues to consider is whether there is a demand for rental properties in the area in question. If there is not, it might not be a particularly wise path to take, but luckily in many towns and cities there are plenty of people looking for rented accommodation.
Prospective landlords should then question what the rental income they are likely to achieve is and whether it is enough to cover all their costs, including the mortgage. Other expenses such as repairs and professional fees should also be calculated, as there is no point in becoming a landlord if it is going to cost the homeowner money.
Individuals will need to work out whether they are capable of managing the property on their own or if they require the expertise of a letting agent. Similarly, some councils require landlords to have a licence before renting out a property, so this must be cleared.
Mr Norris went on to urge people to be realistic about what they stand to gain. While the short-term gains may be relatively small, the long-term benefits should be healthy and enough to persuade many Britons to become landlords.
There is so much to think about, but luckily there is plenty of data out there to help landlords make an informed decision. Considering the market and the potential results of renting a property out should be priorities before any firm moves are made in the near future.
Published on: April 16, 2013
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