According to the recent Government think-tank Understanding Society, the downturn in the housing market means that nine out of ten people who want to move are stuck. As a result the number of “unsold” homes coming onto the rental market is on the rise, causing the growth of ‘accidental landlords’ – the vast majority of whom have never been a Landlord before.
A key consideration if you are an accidental Landlord is to be realistic about how much time & energy you have to dedicate to handling the practical, legal & financial responsibilities that are associated with renting out a property
- Are you prepared to deal quickly with tenant queries, compliants or maintenance issues?
- Do you have the time to complete maintenace inspections or chase late rent payments?
- Do you have the financial resources to cover periods when the property is empty? the tenant stops paying? or maintenace jobs need paying for?
- Are you prepared to get up to speed with EPC’s, gas safety certificates and the other statutory requirements?
It then becomes a matter of finding a level of service that is appropriate for the time and level of risk you are comfortable with versus the monthly rental income you might receive:
Tenant Find – this may suit you if are prepared to take on the full responsibility for the entire tenancy, but want help finding a suitable tenant upfront.
Part Managed – this level of service is appropriate if you have more time & energy to manage your property but want the agent to manage the collection of rent. Responsibility for dealing with tenants & handling maintenance etc will still sit with you.
Fully Managed – if you have limited time to manage the property, handle tenant queries or keep up with legal requirements then this service could work for you.
Northwood offer an additional type of service called the Platinum Guaranteed Rent scheme, which is perfect for the ‘accidental landlord’ who has monthly bills to pay. This service offers all the benefits of a fully managed service but gives the Landlord the peace of mind that the money will go into the bank each and every month regardless of whether the tenant is paying their rent and even if the property is empty. There are absolutely no costs or commissions added on with this service so the rental income you are offered is the rental income you will get.
If you would like to calculate what your net annual rental income might be, we suggest you try out our new rental calculator. http://www.northwooduk.com/landlords/rental-income-calculator.html