There are currently more than 1.5 million landlords in the UK, and this number is increasing. As property prices refuse to climb, there are some bargains to be had for would-be landlords. Choosing the right property is the first step, but what you do next is equally important.
The rising cost of living combined with the current financial insecurity suffered by many people in the UK can spell disaster for landlords. A few false moves could land you with nightmare tenants who cost you more than you make.
UpMyStreet.com has asked rental experts, upad.co.uk, the UK’s marketplace for property rental, for some expert advice:
1. Make friends
Keeping in close contact with your tenants will make them less likely to default on a rental payment. If they are having trouble receiving payments due to a short-term financial situation, then show understanding by perhaps offering them a reduced rate of rent (at least initially) - some cash is better than no cash.
2. Cheque them out
Ensure your tenant sets up their payments through a standing order. Then you won’t have to keep hounding them for money, which is both time-consuming and potentially damages the relationship you are trying to build. It also means your tenants won’t embarrass themselves if they “forget” to pay – or be able to use the excuse “the cheque's in the post”.
3. Bank on it
Make sure prospective tenants provide you with their last three months of bank statements. These will show you that they have a regular salary going into their account, and that it is sufficient for them to be able to afford your rent.
4. Delve into their past
Phone their previous landlord/s to confirm that they were reliable tenants. This also establishes that the information they have given you is correct.
5. Cover your back
If you are still not certain that the tenants will always be able to pay the rent every month, acquire a UK-based guarantor, who will then be liable to pay the rent if they default. Another option, which may already be included in your building cover, is to obtain rent guarantee insurance.
» More useful landlord and tenant information can be found at upad.co.uk
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Useful links
- Credit check - check your credit report
- Mortgages - compare mortgages & save on your biggest outgoing
- Property valuation report - buy or sell property at the right price
- Research the rental market in Great Britain
- View recent property sales in Great Britain
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