Landlords

When considering buying a property to let, it is important that you consider the market in which you will be operating. The type and location of the property needs to be suitable for your prospective tenants, and the initial and running costs need to be met by the income.

In choosing a property, you must also be clear whether you are seeking a net income or are simply investing for capital growth, since the level of maintenance and repairs may be affected by the type of property.

If you are thinking of becoming a landlord you are advised to spend some time researching:

• the demand for rented housing
• the achievable rent
• the costs of outgoings including financing purchase etc
• costs of repairs and letting
• insurance
• taxation
• the loss of income through vacancies (between tenancies)
• unexpected costs
• the profit margin
• the amount of time and experience you will need

In addition, you may want to manage the accommodation directly or arrange for a managing agent to carry out some (or all) of the functions of letting, rent collection and repair.

Remember that you have a duty to comply with legal requirements and standards. You should ensure that these costs are reflected in your business plan.

In addition to these statutory requirements, you have a general duty of care to your tenants and must take all reasonable steps to protect their safety in the property.

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