10 tips for new landlords in Wales! Are you about to rent out your first property? Here are some tips to help you make a success of it.
Being a new landlord in Wales can be a good business move, a way to fund your retirement, or a source of regular extra income for you and your family – but if you’re dipping your toes in the water for the first time, it can be hard to get everything right. Here are some key tips for newbie landlords.
- Make sure you tick all the legal boxes. That includes registering and licensing and making sure the property is fit for human habitation and has the relevant safety certificates. You can find lots of useful information here.
- Get insurance. If you’re about to rent your old home, don’t assume the existing insurance will cover it – you’ll need special landlord insurance. Typical landlord’s insurance includes cover for the building, the furniture/appliances you provide with the property and your liability as the owner of the property.
- Make sure you understand the latest tenancy rules. The rules around key issues such as length of tenancies and procedures for evicting tenants will change in Wales from July 2022 when the Renting Homes (Wales) Act 2016 comes into force. You can find all the details here.
- Set the right price. In the current market, where there is far more demand for rental properties than there is supply, you’re likely to be able to rent your property for more than you imagined. Spend some time researching what similar properties in similar areas are fetching and adjust your price accordingly.
- Screen your tenants properly. This should include running a credit check, checking their employment status and checking their references. You should also check how their income stacks up against the rent they are intending to pay: make sure they can afford it.
- Beware of renting to friends. It may sound like an easy solution but renting to friends can be fraught with difficulties and the friendship can come under strain if problems occur. The last thing you’ll want to have to do is evict a friend, and chances are that if they hit financial difficulty, you’ll feel pressured to help out by waiving some of the rent. It’s generally better to rent to a stranger and keep things on a business footing.
- Make pre-arranged visits to the property to check all is well. Remember, you can’t enter the property without the tenant’s permission, so contact them first and fit the visit around their availability. Checking the property enables you to reassure yourself the tenants are keeping it in good condition, and it can also help you spot problems such as damp before they become serious.
- Make sure you record as much information as possible. Have a written tenancy agreement – this removes a lot of grey areas and makes the terms of the tenancy clear. You should also keep a record of any checks made, any certificates issued for the property and any financial transactions relating to the property. This ensures you are covered if problems occur and can help you calculate your profit from renting the property.
- Remember, your rental property is a business. Treat it as such: that means not only making sure you comply with the law but also making wise decisions about any expenses relating to the property, any rent increases and any tenants who turn out to be less than ideal.
- New landlords in Wales could consider using a letting agent. Many of the points above can be dealt with for you if you use a letting agent such as Morgan Jones. With many decades of experience in property lettings, we can take the strain so that you don’t have to.
So those were our top tips for new landlords in Wales! Are you ready to find out more about how Morgan Jones can help you with property management? Get in touch today – we love to chat!