I was lucky enough to buy my first home back in the early 1970’s when prices were still low. This meant that by the time I came to sell my home and move last year I had made a substantial profit on my initial investment.
As I was looking at new properties I started to think about how I could make the profit on my house sale really work for me. I decided that instead of just buying one single property I would split my investment and buy a smaller house and a flat for rental purposes. The rental market is growing from strength to strength and I knew this would be a good way to keep building my assets into the future.
Have You Got What it Takes?
It does take a lot of time and effort to manage even one rental property. You do need to make sure you are providing a safe and comfortable environment for your tenants and this means regular maintenance and checks. It can also be a big job to ensure your property is occupied at all times and that you are receiving the rent that is due.
- It is essential then that you have devoted enough time and money to running your rental property.
- You do need to be available to your tenants and have provided them with contact details so that they can get hold of you if they need you.
- It is also important that you have a maintenance fund in place. This means you will be able to sort out any problems such as organising repairs and maintenance issues quickly and easily.
- Even basic tasks such as getting the property ready to rent again after a tenant has moved out can be expensive. This could include a complete redecoration of the interiors so you must make sure you have the funds to turn this around quickly and get your property back on the rental market and earning you money again.
Becoming a Landlord
My parents owned a student rental house for many years so I was not under any illusion that becoming a landlord would be easy. I knew that a lot of hard work and effort goes into maintaining and running property for rental. Too many people go into the rental market not really understanding that this is actually a form of business. This means it must be dealt with in a serious and professional manner if you want to succeed.
This is one of the reasons I chose a single bedroom flat to start off with. This seemed to be a good, manageable size for a first rental property and I would only have to worry about one single tenant at a time. I have learnt a lot from my first experiences as a landlord and here are just a few tips that could help to get you started:
- Make sure you get proper landlords insurance. This was a top tip from my parents and I was extremely grateful for it when my first tenant flooded the bathroom and caused a lot of damage to the floor and ceiling below.
- Landlords insurance will cover you financially for a wide range of potential problems so it is important to have it in place before you put your property on the rental market.
- If you don’t have time to manage your own rental properties properly then call in the experts. There are plenty of rental companies available that will take over the management for you.
- They will sort out new tenants (including basic security and financial checks), collect rent and take care of repairs and maintenance.
- This sort of service will cost you money of course but it will ensure that your property is well looked after and available on the market all year round if you do not have the time to do it yourself.
Business Octopus landlord insurance was invaluable for my first rental property. This enabled me to provide the financial protection to safeguard my new asset into the future.