Thinking of becoming a landlord?
Income from Buy To Let investing can come from two potential streams: from rent and from the capital growth. The property market has had its ups and downs so being a landlord is a medium to long term investment risk. Over the last 5 year many new regulations have been put in place and it’s easy to feel overwhelmed. However, as long as you do your research or appoint a reputable agent, meeting your obligations and staying on the right side of the law shouldn’t be a problem. Let’s not forget, these rules and regulations are there to protect both tenant and landlord. Before you take the plunge here are some things you will need to consider.
Will you manage the property yourself or will you use an agent to do it for you?
Manage Myself -
•Are you up to speed with current rental legislation? Presently there are more than 100 rules and regulations!
•How long are you looking to let the property? An AST (Assured Shorthold Tenancy) has a minimum of 6 months and a maximum of 3 years.
•Have you thought about taking out a Rent Guarantee or Legal Expenses cover?
•You need to register the tenants deposit with a Government backed Tenancy Deposit Scheme. At the end of the tenancy you will need to deal with any discrepancies with the tenants deposit return.
•We would recommend an inventory is conducted before the start of the tenancy, this will detail the properties contents and a property condition report. This will also help with the deposit return at the end of the tenancy period.
•Are you up to speed with the current Energy Performance Certificate (EPC) regulations?
•Are you aware of the Immigration Act – Right to Rent?
•Do you understand your responsibility regarding the Gas and Smoke & Carbon Monoxide Regulations?
•Are you prepared to undertake regular property inspections to check on the condition of the property during the tenancy period?
•If you needed to gain possession of your property, for whatever reason, are you aware of how to serve the correct notices?
Use an Agent – (*who would do all of the above for you) then we would recommend you look to use an agent who is a member of ARLA or RICS. These are professional agents who promote the highest expert advice and guidance, giving you peace of mind through your property journey.
Many lenders have opened up their criteria for Buy To Lets, says Charlotte Skinner, our whole of the market mortgage specialist. A few examples of areas they have improved on their criteria are -
-Increasing the maximum borrowing to 80%,
-Landlord portfolio enhanced lending and benefits, ie. No maximum properties
-No credit scoring with some lenders
-No minimum income needed
-Maximum age 90 on application
*Fees will apply. At White & Sons we offer three different tiers of service.
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Established in 1817 White & Sons are award winning independent estate agent with offices in Dorking, Reigate, Horley, Oxted & Leatherhead. We are a forward thinking business which uses cutting edge technology backed by 200 years of experience to assist with all your property related matters.