Being a landlord is not as easy as people think. Whilst there are numerous benefits, the stresses of managing tenants and properties can be a minefield. There are various things that can go wrong, so we’ve decided to highlight the most common pitfalls of letting a home and how to avoid them.

A common mistake that landlords make when letting a property is not vetting potential tenants. Nightmare tenants are a real thing, and it could easily happen to you. It is crucial that your tenant is properly referenced, credit checked and that your agent looks into their right to rent status. If there’s a licensing scheme operating in your borough, it might even be a condition of your licence.

Lots of landlords are unable to detach themselves from the property. This is not your home, and this is now a business transaction. Instead of spending lots of money and time decorating the property to your taste, keep the décor neutral and simple. The goal is to make the property appealing to as many people as possible so remember functionality over fancy design.

We all want money but overpricing the property is another common pitfall which landlords often make. Renters are likely to be searching the local area so price your property competitively. In today’s digital world, it is now easier than ever to research the local market and as each week passes by your property listing will get older and start to slip down the rankings. It’s pointless holding out for too high a price, losing valuable marketing time, and possibly extending your void period too. Ask the agent to justify their valuation.

Before you rush into the decision of whether to let your property or not, as a landlord you also need to ensure that you are financially stable. You need to ensure you have a budget, which includes the cost of letting as well as a contingency for any repairs that become necessary (always think ahead). It is important to look into your mortgage as well, as some products don’t allow you to let the property.

It is easy to get complacent, and after the first few checks, landlords soon relax and forget to keep tabs on the property. Aside from cleanliness and how the property is being treated, inspecting the property also allows you to see whether the tenant is doing things without consent. You will also be surprised at how many landlords go without a formal tenancy agreement. This is a necessity – even if you are letting to a friend. You’d be surprised at how often things go wrong. It is also required that all tenants’ deposits are protected in a Deposit Protection Scheme and remember to get landlords insurance.

Do not ignore the rules and regulations. Where to start, there are so many, e.g. did you know there are certain checks you need to do when replacing an electrical appliance? What is an Article 4 Direction? Are you affected by MEES? What are your obligations when it comes to the risk of legionella? There are many rules and regulations to follow and not every agent will have your best interests at heart. Only use a knowledgeable letting agent and one who you can trust to look after your best interests.

Keeping these common pitfalls at the back of your mind will help you avoid them during the process of letting a property, hopefully resulting in a quick, stress-free and hassle-free process. If you have any questions about letting a property, then please get in touch.