An Introduction to Becoming a First-Time Landlord
Becoming a landlord is a big decision and one you should not rush. If you want to make a healthy profit in the housing market, you must be willing to invest a considerable amount of time and research into making your new venture a success.
Quotezone.co.uk, a company who specialises in landlord insurance quotes for residential and commercial property owners, is offering expert advice in the form of a handy infographic. It details how to enjoy great success as a first-time landlord, and as a result, you could avoid making big mistakes that could impact your financial future.
Understand Your Responsibilities
Every residential and commercial landlord has a commitment to providing their tenant with a safe, clean, and secure space to live. You are legally required to ensure the property is free from health hazards, but you must also ensure you provide the right level of notice prior to an inspection.
Every landlord has a duty to effectively manage the property. If you want to experience all the benefits of being a landlord without the hard work, you should consider hiring a property manager. It will be their job to not only inspect the property, but they will also need to make any necessary adjustments before welcoming a new tenant, such as arranging a boiler service or an electrician to check the property’s electrics.
Choose the Best Insurance Cover
Every landlord will enter the housing market to experience an excellent return on their investment. However, the wrong insurance cover can result in you losing money instead of making it.
As you are a first-time landlord, you may not realise you are both legally and financially liable for any damage or theft to the property, which is why you must ensure you select the right insurance cover for your needs.
As Quotezone.co.uk recommends, you must be certain you have the right level and type of insurance to cover both the correct number and type of properties you own. It must also cover the right number of tenants and rooms. You must also gain a thorough understanding of what is covered in your chosen landlord insurance policy, such as water damage, fire damage, or theft.
Compare multiple insurance policies by using an insurance comparison website. It might also be a wise decision to consider buildings and contents insurance, which can cover multiple issues within a property. The policy must be for the right sum to avoid a financial loss.
Attract the Right Tenants
The best way to continually provide a safe, secure space is by only handing over the keys to the right tenants, who will pay their rent in full and on schedule. As the infographic recommends, you must gain an in-depth knowledge of your market so that you can attract the right tenants. Carefully think about their stage in life, income, and the property’s location before advertising.
Bear in mind that a tenant might want to sublet the apartment once they have signed an agreement. They must inform you of this plan so that you can notify your insurer. If you do not, you risk invalidating your landlord insurance.