Becoming a landlord.

redmel1621

Hi,

I just have a couple of questions about the process of becoming a landlord.

My brother and I are hoping to buy a property that we can let. We have decided to start with a small flat, but as neither of us has entered this realm before, I am just trying to get some pointers to refine my research.

We are going to be buying the flat with mostly savings, although depending on what is on the market/takes our fancy, we may need a loan or small mortgage but this shouldn't be more than 20k.

As we are hoping to do it as a cash purchase we obviously won't need to register it as a buy to let with any mortgage companies, but do we need to register it with anyone else?
I do know we would have to look into contents insurance (Is there a special landlord type) I also know we would need to have it gas safety checked regularly and I would prefer some kind of cover on the boiler to cover this and any breakdowns...
We aren't going rent it out through an estate agent, so I suppose we need to ensure a decent contract is drawn up in case of defaults on the rent payments or extensive damage to the property.

That is the extent of my knowledge. I suppose is what I am hoping for is some kind of 'list' of landlord responsibilities and expenses... from first purchase to renting...

Thank you in advance, Mel x

G_M

* Tenancies in Eng/Wales: Guides for landlords and tenants This thread is intended to provide information to both landlords and tenants relating to Assured Shorthold Tenancies (ASTs) in England and Wales.

Topics covered:

* Repairing Obligations: the law, common misconceptions, reporting/enforcing, retaliatory eviction & the new protection (2015)

* Deposits: payment, protection and return

* Ending/renewing an AST: what happens when a fixed term ends? How can a LL or tenant end a tenancy? What is a periodic tenancy?

* Rent increases: when & how can rent be increased?

* Repossession: what if a LL's mortgage lender repossesses the property?

* New landlords: advice, information & links

* Letting agents: how should a landlord select or sack?

Guest101

redmel1621 wrote: »

Hi,

I just have a couple of questions about the process of becoming a landlord.

My brother and I are hoping to buy a property that we can let. We have decided to start with a small flat, but as neither of us has entered this realm before, I am just trying to get some pointers to refine my research.

We are going to be buying the flat with mostly savings, although depending on what is on the market/takes our fancy, we may need a loan or small mortgage but this shouldn't be more than 20k.

As we are hoping to do it as a cash purchase we obviously won't need to register it as a buy to let with any mortgage companies... I do know we would have to look into contents insurance (Is there a special landlord type) I also know we would need to have it gas safety checked regularly and I would prefer some kind of cover on the boiler to cover this and any breakdowns...
We aren't going to go through an estate agent... I suppose we need to ensure a decent contract is drawn up in case of defaults on the rent payments...

That is the extent of my knowledge. I suppose is what I am hoping for is some kind of 'list' of landlord responsibilities and expenses... from first purchase to renting...

Thank you in advance, Mel x

G_M's link will help and will be along shortly. EDIT: or previously - very quick G_M!!


Meanwhile research your market. Who is going to rent your small flat? What is the rental income? What's your tax implications/? Is it financially worthwhile when you include service charges etc. (ie would you get more from an investment elsewhere)

asus19877

lets assume you dont need a mortgage etc, You do however need the permission of the freeholder to let the flat, You may want to factor that in when selecting a flat

redmel1621

Thank you all. I will look at all the links posted and research areas mentioned.

ognum

asus19877 wrote: »

lets assume you dont need a mortgage etc, You do however need the permission of the freeholder to let the flat, You may want to factor that in when selecting a flat

Not true of all flats, read the lease!

Cakeguts

How do you know that a small flat is what good tenants in your area want to rent? Have you done any market research or have you just decided that you have got x amount of money and so you will be able to get a certain property with that regardless of what is needed in your area? If you buy the wrong property it will be difficult to let. It it is difficult to let you will not get a big choice of tenants and you will be high risk for getting a tenant who doesn't pay the rent or who wrecks the flat or both.

redmel1621

Cakeguts wrote: »

How do you know that a small flat is what good tenants in your area want to rent? Have you done any market research or have you just decided that you have got x amount of money and so you will be able to get a certain property with that regardless of what is needed in your area? If you buy the wrong property it will be difficult to let. It it is difficult to let you will not get a big choice of tenants and you will be high risk for getting a tenant who doesn't pay the rent or who wrecks the flat or both.

I don't. Which is why I am here asking for advice, rather than just running off and buying it.
It is a relatively new idea, well it is something we have both wanted to do for many years but have never had the means to do it, so have never looked into it.

I am hoping with some guidance about what to research and where best to do that research (web links etc) I will avoid making a costly mistake :money:

G_M

Good to hear.

There's lots of resources on the web - many in the links I provided, but others too.

And whole books on the topic (free at your library).

The more you read, the better prepared you'll be and the easier and more profitable your business will be.

Good reading!

Cakeguts

You have to decide what sort of tenants you want to attract. So single people, young couples or families. A small flat is no good to a family. You then have to work out what your area needs.

Gigervamp

As you'll be buying with your brother, you both should discuss what happens if one of you needs the money in the flat.Would either of you be able to buy each other out, or would you both agree to sell the flat?

If either of you already own a home, or buy one in the future, the extra SDLT will apply.

Not sure if you would be able to get a mortgage for £20K, mortgage lenders tend to have a minimum that they'll lend.

Just some other things to think about.