Making a home (for someone else): FAQs for first-time landlords

12 Apr 2024

Why let my property?
Renting out your property can be a great way to generate income, especially if it covers your mortgage and offers some extra cash. This can be a great option if you're moving in with a partner, relocating for work, or simply need a different-sized home. Beyond the immediate financial benefit, property can also be a long-term investment that appreciates in value. The rent you collect helps offset ownership costs like taxes and maintenance. You might even consider building a portfolio of rental properties for a future income stream. Renting also offers flexibility – you can choose to sell your property later or keep it as part of your investment strategy. Of course, being a landlord comes with responsibilities, but for many, the financial advantages and potential for property growth make it a worthwhile endeavour.
Can I let out an inherited property?
In short, yes, you can let out an inherited property. There are, however, a few things to consider:
  • Is there still a mortgage on the property?
  • Will the rent cover the mortgage and allow for savings?
  • Is some modernisation required in the property?
Going through probate can be a challenging and time-consuming process. If you need some guidance or advice throughout, speak to our Lettings Manager, Jake.
What about my mortgage?
If you haven’t already, you will need to inform your mortgage lender who may give you consent to let the property. Sometimes, they may transfer you to a buy-to-let mortgage. If you own your house outright then you can skip this step!
Are there any tax or national insurance implications?
Income collected from rent is classed as a taxable income. Income tax for landlords is based on the profits you make after any expenses have been deducted. It’s always best to speak to your accountant if you have any complex tax or national insurance questions. Check out our blog outlining Making Tax Digital for Landlords.
Do I need to do any work on the property?
If you see an issue in the property, then a prospective tenant will also see it. Our clients benefit from access to our in-house Maintenance Team. We can meet you at the property to advise on any recommended works or snagging issues. Most of the time, this will be done on a valuation.
What will I be responsible for as a landlord?
You will need to ensure your property is compliant with the extensive list of legal responsibilities. These include a gas safety certificate, EICR, EPC, deposit registration and much more…
You’ll need to make sure issues that tenants are reporting are responded to in a timely, and appropriate manner. Agents and landlords have a duty of care for their tenants and the property itself, should issues not be corrected, the council may place an environmental health order on the property.
When you use a managing agent (like us 👋), we bear that administrative burden for you. You can rest assured that your property is fully compliant and being routinely monitored by our team of experts.
Do I need insurance?
It’s highly recommended that landlords take out specialist contents (where applicable) and building insurance for rental properties. Standard policies don’t cover landlord-specific issues including tenant damage to the property. Landlord-specific insurance can include public liability, loss of rent, legal expenses and other add-ons. Some policies require specific tenant referencing procedures to be followed, however, our in-house referencing team works within our recommended insurance providers' perimeters. If you have any questions regarding our insurance offerings, speak to Jack Newton.
If I wanted to, how would I get my property back?
This depends on the reason for wanting the property back. The main methods for eviction when your tenants are on assured shorthold tenancy is via a Section 8 (breach of tenancy notice) or a Section 21 (no-fault eviction). Our team are on hand to talk you through the best plan of action in the unlikely situation you require the eviction process.
How much is my property worth?
The million-dollar question! This is where our team's experience and expertise come into play. A desktop valuation can be given, however, we always recommend that Jake visits the property so that a more accurate valuation can be provided. It’s also a great opportunity to quiz him on any questions you might have regarding the lettings process!
Using an agent or self-managing?
The rental market is a tough and challenging space for landlords at the moment, with the incoming rental reform bill due to be introduced, increasing regulations being brought it and the often time-consuming communication with tenants and contractors that naturally happen throughout a tenancy.
At Ultralets, our team of over 30 experienced property management professionals takes pride in exceeding expectations. We understand property management's intricacies and are always working to foster positive relationships between landlords and tenants.
Our comprehensive suite of services encompasses all aspects of property care, from scheduling routine maintenance and conducting detailed inspections to addressing tenant inquiries and navigating rent reviews on an annual basis. This ensures your property is meticulously maintained while minimising your administrative burden.
Hopefully, this has helped in answering some of your questions, though there's so much more to becoming a landlord for the first time. Our years of experience can help support you through the process. If you're a first-time landlord looking for some guidance, talk to our Lettings Manager, Jake, today! Drop him an email or give our office a call on 01482 562 562.

Posted By

Jake Astill

Other posts by me

Rated 5 stars on Google
by our customers

Talk to an Ultralets
team member