Property owners 'should pay attention to detail'

by Sarah Ashcroft

Individuals who are considering becoming a landlord in a bid to earn more money in the current economic climate should realise there is a lot of work involved when letting out a property.

This is according to Malcolm Harrison, spokesman for the Tenancy Deposit Scheme, who said proprietors need to have a keen eye for detail, while making sure they carry out tasks in the right order to prevent mistakes.

Mr Harrison said failing to do so could lead to "all kinds of problems" for property owners who do not ensure they conduct themselves in a professional manner, as many people do not realise the amount of detail they need to pay attention to.

His comments were made after Sarah Rushbrook - founding director of Rushbrook & Rathbone - said more individuals are considering investing in buy-to-let mortgage deals, but claimed it is surprising they only take repayments versus rental income into account when researching affordability.

She added; "All too often, they fail to remember that where rented property is concerned - unlike stocks and shares, for example - there is a need for continued, long-term investment in the form of maintenance."

This sentiment was echoed by Mr Harrison, who said many landlords do not ensure they have a proper tenancy agreement drawn up or take an inventory, which are vital tasks for making sure they do not run into trouble in future.

He went on to claim many property owners fail to make sure the lease and the deposit are registered with one of the rental schemes, as this is often brushed under the carpet.

Making allowances for buildings insurance and utility bills when a property is empty is also a must for landlords, while an annual gas safety check and initial set-up costs are also required.

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Published on: August 8, 2012

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