If you decide that you want to manage your own rental property, make sure you’re aware of what’s involved and know what to expect.
It’s easy to get caught out by unexpected complications when managing an investment property, so you need to be prepared for every eventuality.
Learning how to manage your own property investment in the UK is a task that every investor should familiarise themselves with, even if they choose to use a property management company.
This means you can change your investment strategy over time, and understand what responsibilities you are delegating to the property management company to ensure they are doing a good job of managing your property.
Here are some top tips to help you manage your investment property as successfully as possible.
Stay on Top of Rental Property Finances
When you own a rental property, your primary income comes from regular rental payments from your tenants.
To manage this side of your investment, you need to make sure that your tenants pay rent and that they’re keeping on top of rental payments each month.
You also need to factor in things like rental income tax and ensure you stay on top of your financial commitments.
Keep Up With Rental Property Maintenance
If you already own a home, you will know how often inconvenient repairs and maintenance tasks can crop up.
When you own a rental property, you must respond to any issues your tenant is having, which could involve matters within the property.
Anything that can impact your tenants’ stay within your property will need to be repaired, and you will need to respond to this promptly.
The costs of this can be taken out of the rental income you make from the tenants, so you may not need to spend your own savings on maintaining the property in most cases.
This is one of the elements of managing a rental property yourself that can require a lot of extra time and attention.
Keep Your Tenants Happy
One of the best things you can do as a property investor that owns rental properties is to make your property as appealing as possible to tenants.
This can be done through decor in the property or the property itself and its location. However, you also need to think about the kind of experience each of your tenants has within your property.
If tenants have a bad time living in your property due to things like poor communication, they’ll be less likely to become long-term tenants and will be unlikely to recommend your rental to friends and family when they move out.
High tenant turnover rates and void periods are the last thing you’ll want as an investor. That’s why keeping your tenants happy is a crucial part of managing an investment property.
Make Sure You’re Aware of Rules and Regulations
A landlord and property owner must abide by different rules and regulations when renting out a property.
The key things to consider include:
- You must keep your property safe for your tenants and free from health hazards.
- You must provide an Energy Performance Certificate for the property.
- You need to make sure all gas and electrical equipment is safely installed and maintained.
- You must keep your tenant’s deposit protected in a government-approved scheme.
- You must ensure your tenant has the right to rent (for rental properties in England).
- You need to be clued up on the eviction process for tenants.
To meet all of the rules and legal obligations required of you, it’s essential to read up on everything you need to know properly.
Not meeting some aspects of your landlord requirements, such as performing regular gas safety checks, is a serious criminal offence.