Experienced landlords have usually learned the hard way what not to do, but in case you are new to the world of buy to let here are a few mistakes you should try to avoid making.
Failing to Secure a Tenant’s Deposit
Failing to secure a deposit in a tenancy deposit scheme is a one-way trip into your worst nightmare. If you don’t secure a tenant’s deposit, they can take you to court and claim three times the cost of the deposit back. You will also find it hard to regain possession of your property because a Section 21 notice becomes invalid without deposit protection.
Not Bothering with a Property Inventory
Property inventories are extremely important. Without one, it is really hard to prove that a tenant has caused extensive damage to a property – all they have to do is claim the property was already in a poor condition and you won’t have a leg to stand on.
Not Carrying Out Regular Property Inspections
It doesn’t take long to carry out a property inspection. Regular inspections highlight any problems and act as an early warning system when tenants are not looking after the place or have moved all 22 members of their extended family into the spare room.
Failing... to Deal with Rent Arrears
Once a tenant has fallen into arrears, the problem is unlikely to be resolved without landlord intervention. Don’t wait months to seek legal advice – deal with the problem immediately.
Not Being Organised
It is difficult to run a professional buy to let business if your organisational skills leave a lot to desired. The better organised you are, the less likely you are to lose money. Investing in landlord software makes it easier to keep track of landlord responsibilities; so look for the software solution that best fits your business.