How to become a landlord in York
One of the secrets to being a landlord in York and enjoying long-term rental property investment success is to keep your costs down – and that’s as true for a buy-to-let landlord as any other investor.
As an investment, putting money into a buy to let property offers some of the best returns available and in this article we will detail what you need to know about becoming a landlord in York.
However, the tips and ideas detailed here can be replicated anywhere in the UK because essentially there are two things to remember for successful property investment; invest for the long term and control your costs.
The best way for anyone to run a rental property is to hire the services of an experienced letting agent such as Redmove because they will have the expertise and knowledge to deal with any of the problems that will occur. And they will occur!
Why a landlord in York needs a letting agent
Obviously, anyone can become a DIY landlord but there can be problems and legal obligations for landlords that they need to appreciate and comply with.
If a landlord wants to generate as much profit as they can from their investment, then they can save money by not having a letting agent to manage and maintain the property.
This will save on fees so for anyone who wants to become a landlord in York, this article will explain in more detail exactly what you should expect.
Firstly, as we have explained previously on the Redmove blog, research is key to a successful property investment; you need to do your homework and find the best area for a property investment.
This may mean that the property may be nowhere near where you live but is located where there is a demand from tenants.
Research is key to rental property investment success
Your homework should also include finding out just how much people are paying in rent and then working out your profitability, or yield, from that point.
Once a DIY landlord has a buy-to-let (BTL) mortgage arranged, the first hurdle is to find a quality tenant to live in the property. This means either advertising for a tenant and then taking time to show them around the property.
Once you found a tenant that you like and who has agreed to pay the rent, then you will need to carry out extensive checks to ensure that they are who they say they are and they have the ability to pay the rent.
Once you have a tenant in place, you will then need to conduct a check-in process which will consist of detailing with photographs and words exactly what is in the property and its condition. This inventory could be vital when the tenant comes to move out as it will be a crucial document to resolve any dispute about any damage caused.
Communication is also key to a successful tenancy so the landlord should be in fairly regular contact with the tenant. With a letting agent this side of things is done for you.
Tax implications for a landlord in York
It’s also important to remember that whether you have one property or several that being a landlord in York is a business and you have tax and legal obligations to fulfil.
For most landlords there’s more to property investment then simply installing a tenant and collecting the rent; there are ongoing obligations and commitments that you will need to pay for.
Remember too to keep detailed records of any expenditure because you can claim these against your tax bill.
One of the legal obligations for a landlord is that they are responsible for providing a home that is safe for a tenant to live in. It also needs to be in a good state of repair.
This means that should there be an emergency, or a repair needs to be carried out urgently, a landlord is the person a tenant will call.
The landlord will then either carry out the repair or hire someone to do it for them. It is simply not good enough to ignore tenant requests and a landlord cannot ignore a request to fix a problem that is a danger to safety.
Responsibilities of a landlord in York
Landlords are also responsible for the heating and plumbing in a property, there must be a source of hot water, as well as the drains and the electrical wiring.
Many DIY landlords will have a list of tradesmen they can trust in these situations and they will need their contact numbers and pay the invoice promptly when it comes.
There are also various home protection schemes which will provide emergency cover and these are provided by the likes of Corgi and British Gas.
Every year, a landlord in York must have a Gas Safe registered engineer carry out a gas safety check of all the gas appliances, including the boiler.
This is a crucial legal obligation, failure to carry out the safety check and to provide the tenant with a safety record when they move in, or within 28 days of the safety check being carried out, could lead to a fine and in some cases a prison term.
Landlords must also check the electrical installations and equipment, ensure that the furniture in the property is fire safe and it’s always a good idea to install smoke alarms (though many landlords will state in the tenancy that the tenant is responsible for replacing batteries).
Resolving landlord and tenant disputes
We touched upon the problem of disputes when a tenancy comes to an end and this also coincides with the fact that landlords must, legally, place a tenant’s deposit into a Government-recognised scheme. These tenancy deposit schemes will then protect the deposit and they will hand it over to the tenant if there are no disputes or claims from a landlord upon it.
Not depositing a tenant’s deposit either in time or at all could lead to fines being imposed.
Here at Redmove we pride ourselves on our honest and transparent approach to being a leading letting agent in York and our highly trained team will be more than pleased to help.
The finding of and vetting potential tenants is a crucial role for a letting agent which will help to ensure that the tenancy runs without any problems.
We offer everything from a fully managed letting service, which is a boon for any landlord new to buy to let property investment, and we have years of experience in York.
We also appreciate that there are professional landlords in York who don’t need such a high level of management so we offer a varied service that also includes finding the tenant, a letting only service and a rent collection only service.
Contact us now on 01904 488444 for more information on how we can help a landlord in York make a success of their BTL property investment.