Across the UK, the rental sector has doubled in size since 2001, a trend that’s going to continue into 2025, with millions of households continuing to become private renters. So, if you’re considering becoming a private landlord, this is our guide to making it a real success…
How to Get Started
Ensuring your property is ready to become a rental is crucial, with a range of different factors to consider. The property must be safe to live in, with all gas and electrical equipment installed and maintained, smoke and carbon monoxide alarms also successfully put in place, and an Energy Performance Certificate that meets MEES rules.
There are other questions you need to ask yourself too, like if you’re going to rent your property out furnished or unfurnished, if you’re going to allow pets and if you’re going to hire a letting agency to oversee things on your behalf.
What it Costs to be a Landlord
Despite making an income from the rent that’s paid on your property, any landlord will have a series of costs they’ll be required to meet. Repairs are often an issue, as will times when the property is empty between tenancies. Then, of course, if you don’t own the property outright there will be mortgage repayments that need to be made.
Insurance is another requirement, and, if you do work with a letting agency, this too will mean incurring certain costs to cover their fees. Solicitor fees will also be a factor, as it’s advisable to have a legal professional look over and verify your tenancy agreement.
Meanwhile, an Energy Performance Certificate (EPC) costs anything from £50 to £100 and is a legal requirement when renting or selling a property. The good news is it lasts for up to ten years and so won’t need to be renewed with each new tenancy.
Other costs will include Houses of Multiple Occupancy (HMO), which means a certain amount of fixed running payments going forward, plus other variable costs, some monthly and annually. Either way, it’s something that needs to be considered, as full property management fees could potentially cost investors 10-15% of their monthly income.
Standard Responsibilities
As a landlord it’s your responsibility to both maintain your property and look after the well-being of all your tenants. Good insurance is crucial, so as to protect your property against any accidental damage, such as fire and flooding.
Appliances and furniture will need to be kept in good condition, which often means sending out a professional to make any necessary repairs. However, if you’re working with a reputable letting agency they’ll do this for you. Keeping your tenant’s deposit in a Tenancy Deposit Protection Scheme is also a priority, but, again, the right letting agent will do this on your behalf.
Your Rights as a Landlord
Even if you own your rental property outright, once you find the right tenant you’ll need to give notice if you want to visit what is now their home. You do, however, have the right to have your rent paid, and you also have rights to ensuring a tenant leaves your property if, for any reason, that’s required.
If your tenant breaks the contract before the end of the tenancy you also have the right to collect the rent for the rest of the agreed term. If necessary, legal action to recoup any lost profits is always an option. However, a break clause in a tenancy provides security for both parties, giving you and the tenant the means to end the tenancy as amicably as possible.
Services we Can Provide on Your Behalf
Here at CHBL, we offer a range of essential services that support new landlords, whilst also providing professional interior design advice with a proven track record of attracting reliable tenants. We also provide advice on rental valuations, how to ensure a smooth handover, marketing and negotiating offers and referencing. We’re experts at drafting tenancy agreements and can organise move-in funds safely and securely.
We can also help prepare for a new tenancy by, for instance, meeting the new tenant and handing over the keys. We’re hugely experienced in dealing with any tax issues, proper referencing and the day-to-day management of your property. In short, we’re here to support you through every step of the process and ensure your business endeavour prospers in every possible way.
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