We have all been there where we are starting out, or just rethinking how we are managing our property or portfolio. So in this blog we have put together 5 tips to help you consider if you are ready or if you need help. They are in no order and are by no means an exhaustive list but here we go!
1. Learn about your legal requirements
EPCs, EICRs, Gas Safety Certificates, Insurance, Deposit Protection, Selective Licensing…..the legal requirements for a Landlord are so vast and growing that I can’t list them without feeling tired! It is easy to fall foul of your legal requirements and that is one of the reasons we felt there was a need for Landlord Lab. The penalties for not meeting your requirements are draconian and often disproportionate including potential criminal charges. So make sure you are current in your knowledge and have a plan for how to stay updated.
If you are not sure what the requirements are, how to stay updated or how to manage your requirements then we would love to hear from you so we can assist. Or subscribe for regular updates.
2. Reference ALL your tenants
Not so long ago this was a nice to have. Now it is a MUST have. The risk of a tenant not paying is too big for your business. You can lose up to 2 years rent by the time you regain possession of your property if you are unlucky enough to come across the wrong tenants. Speaking from personal experience in today’s world giving people the “benefit of the doubt” is not a wise business decision. As someone with over 20 years of experience you would think I should be able to trust my gut and spot a scammer. But even I have fallen foul of tenants who never intended to pay as the law has emboldened rogue tenants. The cost to my business was £20,000. You have to ask yourself if that is a risk you are willing to take based on your “gut”.
I sympathise with the majority of tenants who are honest, hardworking people who have no intention of doing the wrong thing. They are facing increased costs and hurdles as a result of badly thought out legislation and a failing court system.
3. Get Rent Guarantee Insurance
Getting proper referencing will reduce your risk of default but it won’t remove it. Even for the best tenants circumstances can change and if they can’t pay then you are on the hook for the loss. There are plenty of people, including councils and organisations like Shelter, that advise tenants that the last person to pay is their Landlord. Setting aside the morality of this advice the reality is that it means you are the bottom of the pile when it comes to payment so you have the most to lose. In that event you will be grateful that you have Rent Guarantee Insurance to cover the rent shortfalls and the legal costs to recover the money from the tenant. In terms of risk v reward we think that this insurance is now a must have.
4. Keep a record of everything
When we say everything we mean it! Rent payments, repair requests, responses to these requests, the invoices that show you made the repair…. even your check in to see how your tenant is getting on. If there is an issue the presumption in the current environment is that you are in the wrong. You will be grateful if there is a dispute that you have these records to hand.
Contact us if you are struggling with tenant management and recording information related to it. We can help.
5. Remember your tenants are human
When a tenant has something that has gone wrong, like a broken boiler or a leak, they are likely to be very stressed out. This is their home and they want to enjoy it. So they are sometimes going to be quite agitated or aggressive when they contact you to fix it. Its easy to take it personally. But our advice would always be not to get annoyed and to try and empathise with them first. We know things go wrong no matter how good a Landlord you are. But many tenants don’t have the experience you have. Often taking the heat out of the situation and making someone feel heard is the first step to rectifying the issue. Ultimately we all want things to be fixed in a timely fashion. If your tenant understands that you are on the same side as them you will find it easier to work together to fix the issue.
If this sounds like customer service advice that is because it is! If you struggle communicating with your tenant, whether that be because of your other commitments or just because you don’t enjoy dealing with complaints then you know what to do. Contact us or subscribe to the blog. We can even take the weight off your shoulders with our tenant supports systems and processes as well as trained staff.
Conclusion
These are some ideas that hopefully you find useful in improving how you manage your property and tenancies. Being a Landlord can be a full time job but with the right support and planning it can still be a rewarding one.