Four
Things You Must Do If You’re an Accidental Landlord

If you’ve become a landlord due to unexpected
circumstances such as bereavement or a new relationship, here’s some helpful
advice. A two-minute read. 

It’s
surprising how many people become landlords more by chance than design – or in
other words, ‘accidental landlords’.

Whether
through inheritance, a change in a relationship or a new job, sometimes people
find themselves in the (rather fortunate) position of owning a property that
they don’t want or need to live in. And instead of selling up, the owner
decides to rent the property out.

While
this usually works out well in the long run, accidental landlords can slip up
if they underestimate what the job involves – it’s not as easy as it looks.

Here
are four tips for accidental landlords.

1)     
Talk to your lender

If you have an owner-occupier
mortgage on the property, you must notify your lender if you intend to rent it
out (otherwise you could be penalised). Sometimes, the lender will grant
‘consent to let’, which is permission to rent the property under your existing
mortgage. But this is usually a short-term solution, and you’ll probably be
expected to get a buy-to-let mortgage eventually.

2)     
Get landlord insurance

A bog-standard home and contents
policy won’t suffice – you’ll need specific landlord insurance. Do your
research on this because the policies on offer can vary significantly. On top
of buildings and liability cover, some policies allow you to opt in to cover
legal costs, loss of rent, or accidental damage. 

3)     
Understand the rules on deposits

There are strict laws regarding
tenant deposits. When a tenant pays you a deposit, you must register it within
30 days with a government-approved scheme. (This is a third-party scheme that
protects tenant deposits.)

4)     
Get to grips with red tape

There are all sorts of laws – at
least 175 – that apply to UK landlords covering everything from evictions and
gas safety to electrical checks. It can be overwhelming trying to get your head
around these, but most successful landlords develop systems to make sure they
stay on top of things. And if you really wanted to sit back and let someone
else take the strain, employ the services of a professional letting agent to do
it for you.

To
learn more about our property management services, contact us here at CWB
Property.