So you think you want to be a landlord? Ask Anna!
After our last article on the basics of property investment, we were overwhelmed with questions about being a landlord.
You also shared the experiences, both positive and negative, that you had already had with property investment. To better prepare you for the challenges of property investment in the future, we contacted Anna Langford at complete, our preferred lettings and management partner, to answer some of your queries and get some top tips on being master (or mistress) of the house.
Hi Anna, I have a property but I’m apprehensive about leasing it out to strangers. How do you avoid bad tenants?
Good tenants are the rule and bad ones the exception, but the best way to make sure you get the most reliable tenants is by getting references, using a strong deposit system and keeping up a tight inspection record. At complete, we use a third-party referencing company before accepting any tenant, which includes credit and ex-landlord checks. We take a deposit of six weeks rent before tenants move in, which is held in the custodial Deposit Protection Scheme.
Once the tenants have moved in, we undertake an independent check-in and check-out inventory to ensure any damage is accurately recorded. We also do yearly property inspections to ensure that tenants are taking good care of the property. Of course, all our tenancy agreements have clauses preventing the tenants from nuisance or anti-social behavior, which we take a zero tolerance approach towards.
Hi Anna, what is a ‘rental guarantee’ and how does it work?
Rental Guarantee Insurance is a service that is offered once a tenant passes their reference checks. This optional service covers lost rent and legal costs in the rare event that the tenant defaults on their rent and legal action needs to be taken against them. It’s a nice safety net for landlords to have, but in our experience it’s very rare to have to make a claim. If you do have problems with tenants not paying rent or other tenancy breaches, then it’s best to deal with these quickly and seek professional advice on your options.
Hi Anna, I don’t want to be out of pocket for too long. How long will it take to lease my property?
The average time to rent a property varies depending on market conditions. Going through a lettings agent or property management company ensures that your property has maximum market exposure and attracts the best tenants. For example, here at complete we provide professional photographs for advertisements, exclusive online advertising, premium listings on prominent property internet portals, newspaper adverts, signage and networking with local agencies.
Hi Anna, how does property tax work? Do I only pay tax when reselling or do I pay tax on rent as well?
Both UK and overseas residents are liable for tax on profit generated from rental income on investment properties. However, most people are entitled to a tax free allowance and running costs can be offset against any tax liability. When selling, both UK and overseas residents will be liable to Capital Gains Tax as of April 2015.
If you need further tax information, which is a specialist area, we are able to refer you to our recommended Tax Advisor – our clients benefit from a 20% discount on their fees.
We hope this Q&A session has helped alleviate some concerns over investing in property and has provided some sound advice for those who want to want to avoid the ‘bad tenant’ horror stories. We highly recommend that you use a lettings and management company to take away the burdens of property investment and ensure that the leasing of your nestegg runs smoothly.
Did you find this article helpful? Let us know if you have any more questions we can answer for you or better yet, get in contact with Anna and the complete team either by email at [email protected] or by phone on 0203 551 9900.
The contents of this article are for reference purposes only and do not constitute financial or legal advice. Independent financial or legal advice should be sought in relation to any specific matter. Articles are published by us without any knowledge or notice of the circumstances in which you or anyone else may use or rely on articles or any copy of the information, guidance or documents obtained from articles. We operate and publish articles without undertaking or accepting any duty of care or responsibility for articles or their contents, services or facilities. You undertake to rely on them entirely at your own risk, and without recourse to us. No assurance of the quality of articles is given or undertaken (whether as to accuracy, completeness, fitness for any purpose, conformance to any description or sample, or otherwise), or as to the timeliness of the publication.
Latest posts by Sally - Silversurfer's Editor (see all)
- Ideal Homes International has launched its Brand New Online Property Series! - May 6, 2021
- Could a short-term rental provide a new source of income for you? - May 6, 2021
- Understanding the 5:2 Diet - May 6, 2021
- Are you taking your medication properly? - May 5, 2021
- Looking after your asthma in hay fever season - May 5, 2021
Leave a Comment!
Community Terms & Conditions
These content standards apply to any and all material which you contribute to our site (contributions), and to any interactive services associated with it.
You must comply with the spirit of the following standards as well as the letter. The standards apply to each part of any contribution as well as to its whole.
be accurate (where they state facts); be genuinely held (where they state opinions); and comply with applicable law in the UK and in any country from which they are posted.
Contributions must not:
contain any material which is defamatory of any person; or contain any material which is obscene, offensive, hateful or inflammatory; or promote sexually explicit material; or promote violence; promote discrimination based on race, sex, religion, nationality, disability, sexual orientation or age; or infringe any copyright, database right or trade mark of any other person; or be likely to deceive any person; or be made in breach of any legal duty owed to a third party, such as a contractual duty or a duty of confidence; or promote any illegal activity; or be threatening, abuse or invade another’s privacy, or cause annoyance, inconvenience or needless anxiety; or be likely to harass, upset, embarrass, alarm or annoy any other person; or be used to impersonate any person, or to misrepresent your identity or affiliation with any person; or give the impression that they emanate from us, if this is not the case; or advocate, promote or assist any unlawful act such as (by way of example only) copyright infringement or computer misuse.
Nurturing a safe environment
Our Silversurfers community is designed to foster friendships, based on trust, honesty, integrity and loyalty and is underpinned by these values.
We don't tolerate swearing, and reserve the right to remove any posts which we feel may offend others... let's keep it friendly!