New landlord - how to?

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    New landlord - how to?

    hi,

    i am a new landlord and am letting out my property for the first time. i am planning to use a referencing agency for tenants and guarantors. any recommendations for such an agency will be appreciated.

    a few newbie questions:

    if a tenant has an expired IVA, should i take that into account and refuse to let, or exercise own discretion?
    what tenant documents should i ask for? passport copies? payslips? employment letters?
    having rent guarantee insurance - is that good practice?

    #2
    Join NLA/RLA and complete their Distance Learning Modules for some knowledge of LL & T Law

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      #3
      You have 3 main choices,
      1. Learn on your own all the regulations/ compliance's you need in order to fulfil your obligations.
      2. Do a course on being a LL.
      3. Give the property to a letting agent, save's you the hassle, if this is not your main income or career, but you should learn some basics.

      As a starter have a read of the how to rent guide https://www.premierredproperty.com/w...t-jul-2018.pdf, this is for the T, but will greatly increase your knowledge.

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        #4
        What is your target market?
        That will determine how you need to approach it.

        I aim for mid-market, working, tenants, who mostly are decent, will look after the place, and won't try to screw me.
        If you are going for down-market tenants, then there are lots of mistakes you can make, and having a decent agent to help you get started may be a better bet.

        Either way, you need training to understand your legal obligations and best practice to make you a good landlord.

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          #5
          As you are a first time landlord, I suggest you use a letting agent. Visit each agent, get a copy of their terms and conditions, read through it, check their fees and get a feel of the company. Do they have people to help with repairs? How good are they on regulations? Do they have out-of-hours phone numbers? Will they help if he tenant stops paying rent?

          There are many pit falls to renting out. If you don't protect the deposit, then you could end up paying money back to the tenants. There are many rules and regulations.

          Being a good landlord takes years of experience. It is just n;t about knowing about the rules and regulation, but a lot of is built up after having a number of tenants.....

          After a few years, you can switch to managing the property yourself.

          Tenant referencing is worth the paper it is written on. Yes, I do get it done. I usually ask for payslips, bank statement and go through it to get an idea of the tenant. None of this will tell you if the tenant can look after the property or has friends around at 3am causing a nuisance to neighbours.

          Before you sign the contract, you are a in position of power. Once you have given your property to a tenant, it can take long time, to get the property and they can damage the property.

          Advice given above is great. Get on a training course. Do support the landlord's association.

          You will need to do lots besides renting the property out, such as keeping bookkeeping (keeping a record of your expenditure), renew insurance,
          gas certificate....

          Have a book at Successful Property Letting - How to Make Money in Buy to Let by David Lawrenson. There are books by Which too. Each person will have a person of wisdom....




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            #6

            thank you.

            is it legal to ask for payslips and bank statements?

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              #7
              Yes.
              If you keep any of the information, you are a business and need to follow the GDPR regulations (although some landlords don't).

              Credit reports are good at giving information about the long term performance of someone relating to credit and borrowing.
              They're not so hot at looking at someone's recent spending and income.

              You learn to spot transfers of income in from another account (people get their benefits/wages paid into another account so it's not obvious where the money comes from) and payments to gambling websites and "odd" accounts.
              When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
              Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

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                #8
                coolpixel do you have any idea how much hot water you could get yourself into by going ahead without specialist knowledge. It could end up costing you £000s or even get you a prison sentence.

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