Due to the current financial climate many landlords are looking for new ways to save money, and buytolet.org.uk has revealed in a survey today that many landlords are now opting to manage their portfolios themselves instead of paying large fees to letting agents. Generally, letting agents charge around fifteen per cent of the rental income for their services, so landlords are planning on brushing up on their accounting, marketing, and DIY skills so that they can save money and look after their portfolios themselves.
Lee Grandin from buytolet.org.uk said: “As the recession bites many landlords are looking at ways to cut costs. While letting agents will do a lot of hard work, they do demand a big percentage in return, so it is well worth learning how to fix a tap and market your property to its best advantage. But be prepared to give up weekends and evenings for viewings, advertising and repairs. This might not be a good option for people who are time poor as it’s a big commitment.”
Mr Grandin goes on to discuss how landlords can manage their portfolios successfully, and says that “Your first steps should be to draw up a legally binding tenancy agreement, otherwise known as an Assured Shorthold Tenancy (AST), which both parties must sign. This includes details such as the length of tenancy, amount of rent and deposit details. Drawing up an inventory is also key. Always ensure you take photos proving the condition of the property before a tenant takes residence, this will protect you from any dispute over the deposit that may arise in the future.”
Landlords are also advised to make sure that they have all the legal documentation they need before attempting to rent out their properties, such as a gas safety certificate and an Energy Performance Certificate. Mr Grandin also says that having a good landlord insurance policy is vital and that “It makes sense to prepare for all eventualities, such as a tenant injuring themselves and bringing a compensation claim against you or covering yourself against rent not being paid. Landlord insurance will also protect you against malicious damage, water pipes bursting and accidental damage to items and electrics.”