If you are considering becoming a landlord because you think it will be a stress-free experience as you sit back and collect rental income, then think again.
Being a landlord can be just as stressful as a 9-5 job. Sure there’s no boss to order you about being a landlord. Still, similarly, a day job doesn’t involve putting down a serious amount of your income and being responsible for monthly mortgage payments for years.
This blog covers what causes landlords the biggest headaches and a few tips to help.
Finding a property
Before beginning a Buy-to-let empire, you will need a property and choose from hundreds of houses and apartments on the market. It’s a well-known fact that we humans find choice (even when there are no consequences) can be stressful. And there are consequences to not choosing the right property. You may fail to find renters, and if you haven’t bought at the right price, even flipping it could carry an eye-watering loss.
There are lots of things that can help you choose the right property. You should consider who you are renting to and what things are important to them. Location is always important, so make sure there are local schools if you are buying a family home. Similarly, a student will want to be close to bus routes and the University, while professionals will want to be close to good transport links. For more information on choosing the right property, check out our blog, 10 Steps To Finding Your Ideal Property?
Finding a tenant
After finding a property and renovating and decorating, your next job is finding some tenants, which is another source of stress for many landlords. In fact, the majority of landlords, a huge 73% of those asked in the UK Landlord Survey 2021, described finding tenants as moderately to extremely difficult.
The first point of call is to create a good quality advert which can be placed on sites such as Zoopla, Rightmove and Primelocation. Ensure any mess from renovations has been tidied away and the property is clean and tidy. Good, clear, well-lit photos are essential. You can check what time of day is best for your particular property, which varies depending on which way it is facing, as it’s always best to have the sun behind you when taking the photo.
You should make sure you sell the property by stating its features while sticking to the truth. Overselling and not mentioning negative aspects is never a good idea. If you take a photo of a car park but don’t own a space for your tenants, you will waste your time and other people’s. Also, if you have decided that you don’t want certain types of tenants, such as students or smokers, you may as well state it in the ad rather than having a larger pool of tenants that you don’t want.
Choosing tenants
It’s essential that tenants pay the rent and keep a property in good condition; this is another area that stresses landlords out. However, many landlords choose to reference a tenant themselves and save themselves time and money. Alternatively, a property manager can do this for you.
Tenants who wish to take on the property can apply, and a holding fee of one week’s rent is usually accepted. If the application does not go through, the tenant is reimbursed for their time and expense. And if all goes well, the holding fee is deducted from the first month’s rent.
During an application, the tenant will be asked for employment history and to prove their earnings are 30 times the rent. So if the property rent was £500 per month, the tenant would need to earn £15,000. They also need to provide a credit history for the last six years and also a tenant reference if they have rented before. If everything is not quite perfect, you can always ask for a guarantor, such as a parent, who will also undergo a credit check and be legally responsible for the rent if the tenant does not or cannot pay.
Knowing your legal responsibilities
There’s no exam or test you have to take to become a landlord. And a mortgage company is not interested in whether you know the law surrounding renting properties. It might be a surprise, but there are around 125 laws surrounding the rental sector, and more than half of landlords found it stressful knowing their legal responsibilities. Not just that, laws are changing all the time, and you need to keep up so that you don’t fall foul of laws regarding taxation, tenant’s rights and property safety.
During the last 12 months, landlords had good news concerning shortening eviction notice periods, but the rules are complex and vary from situation to situation. However, in the last 12 months, electrical inspections have become mandatory for all properties and must be carried out every five years. The next significant change to the law expected to impact landlords is the Dogs and Domestic Animals Accommodation Protection bill which will give tenants who are responsible owners the right to keep pets.
You can keep up with changes by reading the news and subscribing to landlord forums.
Handling maintenance issues
Wouldn’t it be great if things never went wrong? Unfortunately, they do. Many landlords find it very stressful when a tenant calls requiring a property repair. You need to ensure the property is not damaged and the tenant is safe and minimally inconvenienced by a prompt repair.
However, when you are searching for a tradesperson to come out quickly, you also have to think about your bottom line. You are, after all, running a business to make a profit, and costly repairs can eat into profits. In fact, 78% of landlords surveyed said finding a well-priced repair was difficult, and 72% stated that finding reliable tradespeople was also challenging.
If you are a new landlord, this is harder still. We recommend using sites such as Bark, Mybuilder.com, ratedpeople.com and toptradespeople.co.uk. These sites work the same way TripAdvisor does, with customers adding reviews that act as a recommendation for future customers. Create a list of different tradespeople and have at least two names for each trade you might need, such as plumbers, electricians, gas engineers, plasterers, roofers, and gardeners. Add at least two names per trade, as good tradespeople are usually busy and may not be able to come in an emergency.
Common causes of stress for landlords: Things to Remember
Here’s a brief overview of landlord stresses:
- Finding a property can be tricky but read some of our other articles , so you know what tenants are looking for. That way, your property will be appealing as soon as it is on the rental market.
- To find tenants, ensure you create an excellent and informative, truthful description of the property with well-lit photos that show the property in a good light.
- Choosing tenants can be tricky, but you should be fine if you use a referencing service and ask for a holding deposit for your time. If a reference could be better, it’s your choice not to accept it or to negotiate with the tenant to provide a guarantor.
- Being a landlord can be a legal minefield. You must ensure the property is safe by carrying out various checks and providing smoke and carbon monoxide alarms. You can keep up with new laws surrounding tenant rights and other legal issues that affect you by signing up to landlord forums, where experienced landlords can share their advice and knowledge.
- Make sure you are ahead of the game when it comes to repairs by preparing a list of excellent tradespeople you have used before. You can find tradespeople in your area by checking out sites such as Bark, Mybuilder.com, ratedpeople.com and toptradespeople.co.uk.
Protect the environment. Reduce paper consumption and help save the trees as well as save money at the same time. 
