Renting out real estate can be an effective way to make money, but it’s not always plain sailing. If you’re not careful, being a landlord can be seriously stressful. From problem tenants to costly property repairs, you might face a whole range of issues. Luckily, there are ways to mitigate these risks and keep your stress levels in check – and here are a few simple but effective suggestions to help you do this.
Make sure you have suitable cover
All property owners need suitable buildings and contents cover, but as a landlord, there are a range of other forms of financial protection you may benefit from purchasing too. For example, if an emergency arises that makes your property unsafe or unsecure, you’ll have a legal responsibility to address these problems in a timely manner. Shelling out for any repairs could put added pressure on your finances.
With this is mind, it’s worth considering taking out landlord emergency assistance protection. This will help you cover the cost of any emergency repairs. Also, in case you find you need to evict your tenants, you might benefit from taking out legal expenses cover. As well as saving you money, this will ensure you have access to expert legal guidance when you need it most. Specialist insurance policies, like HomeLet Landlords Insurance, can incorporate these extras.
Ideally, you won’t have to claim on your insurance policies, but knowing you have the right cover in place can give you added peace of mind and remove a lot of the uncertainty associated with being a landlord.
Use a tenant referencing service
Especially if you’re in a rush to get tenants into your property, you might be tempted to skip formal checks and rely on your instincts to determine if people are suitable for your property. This is a big gamble though. It can be impossible to tell if someone’s going to be a reliable and honest tenant simply on the basis of an informal discussion. Ultimately, if you make a mistake at this stage, you could end up facing problems ranging from unpaid rent to property damage or complaints from neighbours.
To help you avoid all of this hassle, it’s worthwhile taking advantage of a professional tenant referencing service. Using these services will help you to make an informed decision and they are an essential part of the process when you’re taking on new tenants. Ideally, these checks should cover everything from employment and bank details to hidden names and addresses and undisclosed credit histories. The more information you get, the more confident you can be in your decision and the less anxiety you’ll have about your tenants.
Prepare a detailed inventory
Disputes often arise between tenants and landlords over the state of repair of furnishings, fixtures and fittings. Especially if you’re letting out a furnishing property, it’s well worth doing a detailed, accurate inventory of all the contents of your rental home and the condition these items are in. Get your tenant to check over this information when they first move in and, if they agree with the details, ensure they sign the document. This could prevent confusion and disputes further down the line.
Of course, this isn’t an exhaustive list of all the things you need to do to keep your stress levels in check as a landlord, but it’s a good start. By following this advice, you can avoid a whole range of difficulties.
*This is a collaborative post