Well after near 30 years’ experience I can truly say it all boils down to a couple of minor issues.
The number 1 issue is the “Choice of tenant” the landlord selection of tenant is the main and major failing and it has nothing to do with the applicants job or profession, there is good and bad and instability in all walks of life, we are all only one P45 away from needing some support.
Possibly the worst type of tenant is a self-employed person because if they have a bad month it almost always reflects in the rent or some sob story about the economy forgetting you as the landlord live within the same economy and also need to pay your bills.
Possibly the best type of applicant would be someone employed in the Army, Navy, Air force, Police Force, Fire Service, Ambulance or nursing staff. As these are generally responsible career positions and in most cases are answerable to their chief officers, it is part of their employment that they cannot go into debt, other than say a mortgage or car loan.
Non-payment of rent would be seriously frowned on, so you will always have some leverage with them.
If you are considering a benefits supported application a Landlord can still request that payment go direct to them including those applicants on Universal Credit.
Reserves.
Understand the law.
Prepare for change of tenant either by end of tenancy, or possible eviction, if this challenges your moral fibre, don’t be a landlord or indeed appoint an agent, think about this if you leave them as it challenges you they will simply take advantage of you and any other landlord in the future.
Establish a standing order arrangement so your rent is collectable from there bank account each month set up a credit card account maybe collect the first month’s rent by credit card that way if there is a payment issue you can collect again from the credit card.
Don’t look to far away for an investment opportunity they are lot’s just around you and you will have much better access to your portfolio.
Appointing a property manager, this is very important and becoming near crucial as the laws relating to rental properties are changing all the time.
Let me explain I’ll start with a question Q? Do you know what proscribed information you must issue before you can issue a section 21?
If you do not know and need to use section 21 Notice of The housing act 1988 to gain possession of your property, then you will fail if you have not followed the NEW law and issued the proscribed information.
As the PRS (Private Rental Sector) is becoming more and more in focus due to increased demand the government and other bodies are constantly observing and following events much closer than ever before, there are now about 5 million people renting in the UK and this is predicted, nay almost definitely going to increase significantly over the next 5 years maybe by as much as another 2 million people and that is before we factor in any support to asylum seekers, refugees, or immigration needs.
The Prime Minister himself said in a recent speech that “full landlord licencing is being considered” this will mean every landlord will have to comply with the licence criteria failing which they will not be allowed to rent out their property.
The full criteria has not been established as yet, but following the local Councils demands during the selective licensing process, it basically comes down to “fit and proper” that is the person making the application and the property.
The LA will carry out a property inspection and make any recommendations needed to have the property Accredited then they must consider the applicant and this will be done with the support of the Disclosure and Barring Service (DBS) checks (previously CRB checks) making sure the applicant has no previous criminal convictions especially relating to Property matters.
Then your bank accounts making sure you have the finical stability and support needed to run and manage a business.
And of course have you a suitable qualification?
All of these issues are on the horizon are you ready? Have you considered your position starting the 1st October 2015 ?
However never fear you can appoint a property manager and they can do all the licensing for you and hold the licence on your behalf
They will be up to date with the latest legislation, have contacts in the LA and understand the accreditation system and what will be required.
If we can assist or advise you on your position and that of your property please don’t hesitate to give me a call.
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