There are costs you need to pay as a landlord. In some cases these are necessary to keep everything legal and above board, and in other cases they are just good practice to keep your property safe.
In this article we’ll lay out the costs of some things that you will have to incur from both a legal and best practice standpoint, as well as a few extras you may want to consider if you want to be a more hands-off landlord.
You need landlord insurance. It’s as simple as that. Failure to get your insurance right as a landlord can leave you with a plethora of problems.
You’d like to think that normal home insurance would be enough, but unfortunately the risks incurred by a landlord are different enough from a normal homeowner to warrant the need for a different kind of policy.
Thankfully, there are products out there tailored specifically for landlords. NLA Property Insurance andTotal Landlord Insurance are both products that include full cover, including for accidental damage to the building, alternative accommodation or loss of rent, public liability, un-occupancy cover, and free lock replacement following the theft of keys.
While this isn’t 100% essential, the vast majority of rented properties come with white goods. This is something tenants expect, and you may find potential tenants will be disappointed if they find out these aren’t supplied.
Equally, if this is something you already have for your property then you need to make sure it is in full working order before new tenants arrive – which leads us nicely on to…
Maintenance is probably the most unpredictable and frustrating expense a landlord has to deal with.
No matter how vigilant your tenants are and how good a job you do of keeping things in working order, sometimes things break. Part of being a landlord is dealing with these unexpected events and doing so efficiently will go a long way to cementing your relationship with you tenant.
When the time comes to find a tenant, choosing whether to do this yourself or through a letting agency is an important decision.
A letting agency can take over many parts of your private rental endeavour, from finding the tenants to managing the property but of course, the more they do the more you pay.
This one is strictly a matter of preference on your part. A furnished property will usually fetch a higher rent, but you have to incur the initial outlay of purchasing those furnishings.
You also need to consider that by furnishing the property you are putting more things in, which means that there are more things to maintain.
If you do decide to furnish the property, ensure that you include details about the state and condition of furniture in the inventory. Then if you feel the furniture has been unduly damaged by the tenant, you’re better placed to be able to evidence why you need to make deductions from the deposit to cover the costs of repairs or replacements.
Tenancy Deposit Protection
Tenancy deposit protection is required by law. To ensure you comply, you will have to protect your tenant’s deposit with a government authorised scheme.
Using a tenancy deposit scheme means that you have a number of benefits available to you and withmy|deposits (which is an insurance based scheme), you get to keep control of the deposit by paying a small fee to protect it. We also offer excellent customer service and an award winning alternative dispute resolution service if you can’t agree over the return of the deposit at the end of the tenancy.
Let us know what you think?
What’s your biggest expense as a landlord? What’s taken you by surprise? Let us know in the comments section below!