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Becoming a Landlord

martin_roberts_midshot_hq.jpgMartin Roberts- TV Property Expert, Author and presenter of ‘Homes under the Hammer’ offers advice and guidance on all things property related 

Starting out in the Landlord Game

Kelly Albright asks: “I’ve always wanted to invest in property and have decided that now is the time to buy my first rental property. Can you give me any advice on how to get started?”

Firstly, congratulations! Becoming a landlord can be financially rewarding and like any other job - when you do it well it can be very satisfying. When letting property you need to be up-to-date with all the regulations and rules involved with renting and tenants' rights. However, you can reduce any potential problems right from the start if select your tenants carefully.

Here are a few systems you might like to employ to ensure that you get the right tenants into your property.

1. Advertise your Property Professionally
Estate agents often use a 1 page flyer to promote their properties. You can increase your exposure to good tenant pools by making sure your property is advertised well.

2. Carry out Viewing Appointments Yourself
Make sure that you carry out viewing appointments with prospective tenants yourself. This way you will get to meet them face to face and ask them about themselves and their situation.

3. Get your Tenants to complete a Tenant Application Form
I always advise Landlords to  get prospective tenants to complete a comprehensive Application Form - include details to verify that they are who they say they are, previous accommodation and employment record, details of their income, credit history, references and personal details e.g. Do they have any children or pets? Are they a smoker? How many people will be living in the property?

The application is an important part of your screening process for a good tenant. Remember, once a tenancy agreement is entered into it can be difficult for landlords to evict troublesome tenants.

4. Always Take Up References
Always check the prospective tenant's credit history and identity checks, and take up the references given. It's advisable to verify the references by telephone. If you talk to a previous landlord enquire about promptness of rent payments, any lease violations, noise levels or any complaints from other tenants. A future problem tenant can seem perfectly valid and respectable when you first speak to them or meet them. It’s best to be guarded in this respect and check, check and check again before you hand over the keys to your front door! Most landlords worry most about not having a tenant in their rental property, but having a problem tenant can give you more headaches and work out more expensive in the long run.

5. Give your tenants a 'Terms of business'
Once someone has agreed to let your property, presenting them with a terms of business document is both fair and minimizes misunderstandings later on.

6. Be Aware of the law regarding Tenant Deposits
Landlords need to be aware that all deposits given to landlords for an Assured Shorthold Tenancies (covering most residential letting from 6 months up to 7 years) in England and Wales, must have a Tenancy Deposit protection scheme. This means the deposit must be lodged either with the custodial scheme - this is free to use, or there is an alternative insurance-based scheme. With the insurance plan the landlord retains the deposit and pays an insurance premium to protect against failing to repay the tenant the deposit, in case of any dispute.

7. Consider Joining a Local Landlord Association
It can be very useful to join your local Landlord's Association - you'll find lots of information and help from experienced landlords and advice on regulations.

You can download lots of useful forms and templates from the Landlord Area of Martin’s property website, www.makingmoneyfromproperty.tv
If you have a problem or confusion from the property world, Email your questions to askmartin@martinroberts.co.uk . Individual questions may not be answered personally, but could  appear in this column

Property Hell: Landlord Justice?
I heard a story recently about a landlord who had I spent £4,000.00 putting new kitchen cabinets in his rental property. The tenants liked them so much when their Tenancy was up -they took them with them! The Landlord got his solicitor to write them a letter threatening to charge them with theft if they did not return them. 2 days later the solicitor found them thrown through is office window. He reported the incident and then sent the landlord an invoice for £1,600.00 for the windows!  The landlord hired another solicitor to dispute the £1,600.00 invoice for the broken windows but the first solicitor became enraged by this and came and vandalised the landlord’s car! Apparently the whole debacle cost the landlord over 12,000.00 in legal fees, replacement cabinets and so on – what a nightmare!

Martin’s Weekly Tip: 10 Ways to Avoid Problem Tenants
1. Complete an application form that includes details of last 3 years previous residences.
2. Ask for a copy of a Driving licence, passport or other proof of identity.
3. Consider using a tenant credit referencing service. You can get a full reference done on potential tenants for less than £30.
4. Ask for a copy of the last 3 or 6 months Bank statements.
5. Trust your instincts. Poorly dressed and behaved tenants may require further investigation. Beware of people who seem to be in a rush to move in and are not forthcoming with references and information.
6. Make unannounced visits to the property to see how it is being looked after. You can also confirm that the tenant is actually living there as some tenants use property as a post drop for benefits and other fraud. 
7. Insist they take out Insurance to cover their own belongings and the houses contents.
8. Take 6 weeks deposit to avoid the scenario where the tenant does not pay the last months rent, then leaves but there is damage to the property which needs to be paid for.
9. Make sure you have adequate and specific Rental property Insurance in place that includes cover for  "Injury to people residing in or visiting the premises".
10. Always make sure you have a fully signed ‘Assured Shorthold Tenancy Agreement’ in place before the tenant moves in.

Property Joke of the Week:
The dream of the older generation was to pay off their mortgage. The dream of today's young families is to get one.

To find out more about Martin Roberts and for property advice visit www.martinroberts.co.uk
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