Questions, Questions, Questions – we all have them, but often they don’t get answered. Being a landlord is a huge responsibility and can be very stressful and confusing. There are probably hundreds of questions rushing around a landlord’s head, so here we will take a look at the most common questions a landlord wants to ask…

1.    How do I know what to charge? You need a letting agent to value your home - renters are likely to be searching the local area so price your property competitively and most importantly be realistic with the rental figure. I know the highest price is the most appealing but is it realistic? If not, the property will stay on the market for longer.

2.    Do I need to tell my mortgage lender? Yes. Some mortgages don’t allow you to let the property so inform your mortgage lender, as they will need to permit you. If you are buying a property with the intention of letting it out, you will most likely need a buy-to-let mortgage.

3.    Should I use a letting agent? When letting a property, you can either do it by yourself or use an agent. If you do decide to use an agent, they will charge you a fee for doing so, and this should be money well spent if you chose the right agent. Many people appreciate an agent’s expertise, knowledge and help in finding a tenant; after all, they are the experts and should stay on top of all legislation in this ever-changing industry. There are numerous agents out there, ranging in quality, service and price so shop around and ask your friends for a referral. Is the agent a licensed agent of ARLA Property Mark? Does the agent have client money protection? Does the agent have positive reviews on Google and other review sites?

4.    What should I do with the tenant’s deposit? You must register any deposit in an approved Tenancy Deposit Scheme and also issue the tenant and any relevant person with the correct prescribed information for that particular Tenancy Deposit Scheme. If you fail to do this, you risk a large fine.

5.    Why do I need references? Nightmare tenants and rent arrears aren’t just something that happens in films. These things happen in real life and could easily happen to you so make sure you have references for all tenants. It doesn’t take long to get in contact with a tenant’s previous employer or landlord, and you may soon regret it if you forget to do so. Don’t just stop there; there are further checks you should do on prospective tenants that are just as important as references. I am happy to discuss these further with you.

6.    Do I pay tax on the rental income? All landlords could be liable to pay tax on their rental income, whether they live in the UK or are based overseas. We recommend speaking with an accountant and researching all tax implications first before becoming a landlord.

7.    What happens with council tax? The majority of the time the tenant is responsible for the council tax; however, in some instances, they are not. Remember that if the property is empty, it is the landlord’s responsibility to pay. It is also important to remember that the tenant is responsible for a TV license.

8.    How do I go about visiting the property? The landlord must always provide tenants with sufficient notice which is in line with the terms of the tenancy agreement before entering the property. What if the tenant refuses my request, can I just use keys and enter the property anyway? Most landlords think this is okay to do because it’s in the tenancy agreement, but if you give us a call we’ll tell you why this is a big no no and explain what can go wrong if you do make that choice.

9.    What if the tenant damages the property or doesn’t pay? Landlord insurance will protect you in the scenario of the tenant not paying. Regarding damage to the property, either the tenant pays to fix it, or the cost of fixing the damage is removed from the tenant’s deposit. As a landlord, you need to be realistic and allow slight wear and tear. Please note if a landlord wishes to make any deductions from a tenants deposit they must be able to prove it by way of evidence which would usually be an inventory. If the deposit deduction was disputed by the tenant and the landlord could not prove any evidence, the adjudicator will rule in favour of the tenant.  

10.    How can I remove the tenant? If your tenant refuses to leave the property, then legal action will be necessary. You should attempt to resolve any disputes first, but if you need extra information, Citizens Advice is always on hand to offer help or seek legal advice from a solicitor. Please be aware this process is not straightforward and will depend on many important factors such as; was the correct legal documentation issued to the tenant(s) before the commencement of the tenancy? Was the correct notice prepared and served on the tenant(s)?

Whether buying, selling, renting or letting – the property market is a constant learning curve but being well prepared and well educated can make all the difference. Finally, it’s important to remember that there aren’t any stupid questions because ultimately, these questions are helping to make your final decision. If you are a landlord and would like to speak to an expert, then please get in touch today.