4 Mistakes First-Time Landlords Make and How to Avoid Them

However you’ve become a landlord, whether purposely through investment, or accidentally through inheritance, there are many benefits to be enjoyed. However, whilst it might sound straightforward enough to put your property on the rental market and start drawing income, there is actually quite a lot to master. Landlords often make mistakes when first starting out, some of which can lead to lost profits. Let’s take a look at some of the most common errors landlords make, and how to avoid them.

Mistake 1: Not being adequately insured

An expensive mistake new landlords often make is failing to arrange adequate insurance. Regular buildings and contents insurance is not sufficient for rental properties. A specialist landlord insurance policy is vital. Even if you let your property unfurnished, and your freeholder provides buildings insurance, you’re still going to need public liability insurance in case your tenants have an accident and take action against you. Some landlord insurance policies offer added benefits, such as home emergency cover and rental payment protection. Do always read the small print though so you are certain as to what you are covered for.

Mistake 2: Not having the relevant landlord licence

Whilst houses in multiple occupation (HMO) licences are the only mandatory schemes, numerous councils have put selective and additional licensing schemes in place. It’s therefore vital for landlords to check their local authority website to confirm whether a licence is required for letting their property. Failure to do so could result in a significant fine.

Mistake 3: Failing to conduct mid-term inspections

Mid-term property inspections are the ideal opportunity for you to check how your property is being looked after by your tenants, and whether they are abiding by the rules set out in the tenancy agreement. These inspections can also pick up developing maintenance issues so they can be dealt with before they turn into major problems. If you’re not kept aware of the condition of your property throughout the tenancy, it could leave you wide open to costly issues once the rental period comes to an end. Residential property management companies swear by regular interim inspections for this reason.

Mistake 4: Under-estimating involvement

Being a landlord shouldn’t be considered a hobby or side line. If you fail to treat it as a business, then it’s not going to return the profits you may have expected. Many new landlords don’t realise the level of involvement that’s required in managing a property. The legislation and regulations that must be adhered to, the accounting and bookkeeping side of things and of course, the day to day maintenance. Residential property management companies can ease some of the burden, but you need to choose wisely, considering costs and fees before you make any sort of decision as to who to go with.

For landlord services South Croydon property investors recommend, choose homes2let

Amongst the residential property management companies in Croydon, homes2let offers exceptional added value. Not only do our experts fully take the reins for our landlords making it a completely hands-off investment, we also offer a guaranteed rent promise that sees your rent paid every month by standing order, regardless of whether your property is tenanted. So, if you are looking for a property management company Croydon landlords rate highly for easing the burden, contact homes2let.