The Pros and Cons of Becoming a Part Time Landlord

Written by Posted On Wednesday, 18 October 2017 06:49

Are You ready to become a landlord?With the rise of sites allowing you to rent out a room in your home, many are considering becoming a landlord in a bid to earn an extra income. If you have the space or a second home, it seems like an advantageous situation.

Before you leap ahead, consider the pros and cons, as becoming a landlord isn’t for everyone, and you may want to think twice about the legal and financial commitments before renting out your home. 

To begin, you need to decide what type of let you will offer to the market. Would it be a long term let of six months or more, or would you offer your space as a holiday home?

There are benefits and risks with both types of renting, and the prices you can charge reflect the increase in commitment you need. For example, a holiday home will require contued maintenance and upkeep, whereas a long term let will be taken care of by the tenants. In both situations there are some advantages and disadvantages to consider. 

Can You Let Go?

If the space you’re letting out is personal to you, you may find it hard to let go. Releasing your emotions from the property is essential for moving forward with a successful let. Your property is no longer your own. Your tenants or holidaymakers must believe it belongs to them for as long as they stay. You are merely the maintenance guy, the building regulator, the caretaker which leads me to..

Do You Have Money to Invest in New Furniture?

It’s never a good idea to let a home full of precious items and furniture. Even the best tenants can have accidents. Instead, put money inside to invest in stylish, but durable, hardwearing fixtures, fittings and furniture, so you can easily replace items should they break or become damaged.

Have You Considered the Tax Man?

In the current year you’re allowed to earn £1000 before being taxed on an income from letting out your home. However, there are landlord tax rebates you may be entitled to if you become a landlord. It’s always a good idea to work out how much you could earn, and then to allow for expenses, such as maintenance, cleaning and repairs. You may also be entitled to research and development tax credits if your property development falls into that category. These are all incentives that are worth looking into when becoming a new landlord.

Are You Always Available?

Although good tenants will rarely call, you must provide a number where you can be reached 24 hours a day, 7 days a week. This is in case of emergencies. If a boiler breaks or there is a leak, you must be on hand to rectify the situation as fast as you can. On the positive side, you can choose a letting agency to cover this aspect of renting out your property. The fees will eat into your profits, but it may well be worth it if you don’t have the time to manage the property yourself. 

Are You Ready to Reference?

A letting agency can deal with the references of your new tenants easily but if you are managing the property yourself, this job falls to you. References are incredibly important, as they can make the difference between a property well cared for and one ruined. In the case of holiday lets, make sure you ask for a reasonable damage deposit. This should put most off from damaging your new holiday home.

Time to Take a Step Back

There’s a fine line between being an attentive landlord and being overbearing. Once tenants move in you need to give 24hours notice in writing before you visit. You must agree to allow the tenants to live in harmony without interruption. For some it can be difficult to hand over the keys and to let go of the property. As you do, think about the extra income and all it will allow you to do. As a landlord you join an elite group of people who completely understand what you’re going through!

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Martina Mercer

I am a copywriter and author for many big brands in the home industry. I have written for Huffington Post, Forbes and more delivering expert advice on a range of topics that help the home buyer and leaser.

www.martinamercer.com

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