You should never underestimate the work involved in the successful letting of your property.
The vast majority of landlords prefer to hand over the responsibility for finding a tenant to a dedicated and qualified letting or estate agent. This cuts out all of the necessary awkwardness of having to deal directly with viewings and negotiating with potential tenants. There are considerable advantages in using a letting agent, who will:
Purchasing an investment property is only the first step as a property investor. Once you have let the property, the next step is actually managing the property. There are very specific management requirements you will have as a rental property owner. Here are five tips to make your investment a success.
Keep Up With Maintenance
One of the most important things you should do with your investment property is to keep up with the property maintenance.
This is important for two reasons. First, under landlord tenant law, you are legally responsible for keeping the property up to certain health and safety standards. Second, if your property is not maintained, you will have a hard time finding and keeping tenants. People do not want to live in a mice infested rental with constant boiler issues.
Avoid Tenant Turnover
The next important way to successfully manage your rental property is to keep your tenants happy so that will want to keep renting from you. There are simple things you can do to keep tenants happy, such as quickly responding to repair requests and making an effort to place other good tenants in the property. One of the main reasons tenants move is because they are not happy with their neighbours. Having strict tenant screening procedures in place will help you weed out the good from the bad
Follow Landlord Tenant Law
Understanding and following landlord tenant law will help you manage your rental property and your tenants It will provide a structure for you to follow, which will lead you to make fewer mistakes and therefore streamline the management process.
For example, you will learn the rules for how much you can collect as a security deposit when you must return a tenant's security deposit, reasons you can evict a tenant in your state, the process of evicting a tenant and reasons a tenant may be able to legally withhold rent.
Hire a Property Manager
Managing a rental property can be overwhelming and time-consuming. Hiring a property manager is the right way to solve this problem for some property investors.
You can hire a property manager to do as much or as little as you want. Some landlords only want them to collect the monthly rent, while others want property management companies to do everything from filling vacancies to handling all repairs.
Pay Your Taxes
Finally, to make money as a property investor, you need to make sure you are properly managing your financial obligations. One large obligation every investor has is to pay their taxes.
Paying taxes as a rental property owner can be confusing.
It is often in your best interest to hire an accountant who is skilled in investment property tax law. He or she can help you to understand the deductions you are allowed to take, as well as the deductions that could raise a red flag with the HMRC.