There have been a number of changes impacting on landlords in the past year or so, is it right that people are questioning whether it still pays to be a landlord in 2017?
With the government implementing changes and schemes designed at assisting first time buyers, many landlords feel that they are being penalised in their activities. It is vital that every individual examines their own circumstances to determine if it is worth their while being a landlord but there are still many positive elements to the industry.
There is still high demand for rental property
While the Government has made moves to make it easier for people to buy homes, there is still a massive demand for rental property. This isn’t going to change at any point in the near future, so any landlord wondering whether there will be demand for property can be confident that there will be.
Of course, there will be some landlords who decide that the role is no longer sustainable for them in 2017. This means that there will be an increased opportunity for landlords who do remain in the market. The demand for property is still as high so if there is a fall in the supply of property, the people who do have rental homes to let will find that they can let their homes quickly and effectively.
Average rental prices are expected to rise in 2017
Given that there is widespread coverage of the increasing costs faced by landlords these days, it will come as no surprise to most people that costs will ultimately increase for tenants. This is an issue that many official bodies have raised with the Government in opposition to their continued influence on the property market. It is only natural that landlords will react to rising costs in their business by raising the rental price.
A landlord that can manage their costs while moving with the average rise in costs in the industry can still create a good return on their investment.
Investing in property is still a sensible idea
There is tangibility to property investment that makes it a fantastic idea for many people and this will always be the case. There is also the fact that when you invest in property, you can make moves to maintain or improve your investment, which isn’t the case with many other forms of investment.
For people looking at the long-term benefits of investment, as well as the short, there is a great deal to be said for considering property investment and acting as a landlord.
What is a landlord
The landlord is the owner of a house, apartment, condominium, land or real estate which is rented or leased to an individual or business, who is called a tenant (also a lessee or renter). When a juristic person is in this position, the term landlord is used. Other terms include lessor and owner.
A rental agreement, or lease, is the contract defining such terms as the price paid, penalties for late payments, the length of the rental or lease, and the amount of notice required before either the homeowner or tenant cancels the agreement.
In general, responsibilities are given as follows: the homeowner is responsible for making repairs and performing property maintenance, and the tenant is responsible for keeping the property clean and safe. (Wikipedia)
About Private Renting
You have certain rights and responsibilities if you’re a tenant in the privately rented property. As a tenant, you have the right to:
- live in a property that’s safe and in a good state of repair
- have your deposit returned when the tenancy ends
- challenge excessively high charges
- know who your landlord is
- live in the property undisturbed
- see an Energy Performance Certificate for the property
- be protected from unfair eviction and unfair rent
- have a written agreement if you have a fixed-term tenancy of more than 3 years
- If you have a tenancy agreement, it should be fair and comply with the law.If you don’t know who your landlord is, write to the person or company you pay rent to. Your landlord can be fined If they don’t give you this
information within 21 days.
- Your landlord must give you: a copy of the How to rent guide if you live in England or a tenant information pack if you live in Scotland.
You have some responsibilities:
- You must give your landlord access to the property to inspect it or carry out repairs. Your landlord has to give you at least 24 hours’ notice and visit at a reasonable time of day unless it’s an emergency and they need immediate access.
- take good care of the property, eg turn off the water at the mains if you’re away in cold weather
- pay the agreed rent, even if repairs are needed or you’re in dispute with your landlord
- pay other charges as agreed with the landlord, eg Council Tax or utility bills
- repair or pay for any damage caused by you, your family or friends
- only sublet a property if the tenancy agreement or your landlord allows it
Your landlord has the right to take legal action to evict you if you don’t meet your responsibilities.
You’re a landlord if you rent out your property. As a landlord you must:
- keep your rented properties safe and free from health hazards
- make sure all gas and electrical equipment is safely installed and maintained
- provide an Energy Performance Certificate for the property
- protect your tenant’s deposit in a government-approved scheme
- check your tenant has the right to rent your property if it’s in England
- give your tenant a copy of the How to rent checklist when they start renting from you (you can email it to them)
- Fire safety
- Financial responsibilities
- Legal responsibilities
- If you own a property and rent it out, the council may decide to do an HHSRS inspection because:
- your tenants have asked for an inspection
- the council has done a survey of local properties and thinks your property might be hazardous.(gov.uk)
Util Links For LandLords :
Being a landlord can be a difficult role but Love Your Postcode have experience managing over 1,000 tenancies.
Legal issues, administrative tasks and maintenance work; Love Your Postcode will guide and advise you through any problems, often to the extent that you won’t even realise they have occurred.
The key to our success is that we will only let your property to fully vetted professional family/tenants who will treat and respect your property as if it were their own. In doing so, we avoid the issues other agents get bogged down in and focus on providing you and your tenants the very best service.
Have a look through our different rental packages, or book an appointment to see one of our rental experts.