Considerations For Landlords - Part 1
Owning property can be one of the greatest investments. With ever increasing house prices, large capital profits can be made in relatively short periods. Many owners have over recent years put their “assets to work” so to speak by renting out to tenants with a view to the additional monthly mortgage payments being met by third parties, possibly with a little extra on top. More often than not it works.
So where's the catch?
It is well reported that sometimes it does not work. Landlords can be faced with unscrupulous Tenants who abuse their legal rights and cause significant losses to be suffered.So what can be done?
When deciding to become a Landlord, you need to ensure that you are fully aware of the legal obligations owed to your Tenants but importantly your legal rights and remedies as Landlords. Adopting an active approach at the outset can help to avoid problems in the future.
Therefore, before embarking upon the role of Landlord, simple steps can and should be taken in an attempt to minimise problems that can be encountered. Examples are:1. Obtaining and maintaining legal advice throughout.
Obtaining advice before becoming a Landlord and having properly drawn up tenancy agreements and notices can be a god send. Obtaining early advice on problems that arise can provide an effective and efficient resolution for example, utilising a debt recovery service for demands for non-payment of rent.
2. Ensure that their property is safe and habitable.
Landlords often believe that spending as little as possible will provide better returns. However, this is not always the case. Providing a well renovated/maintained property often creates a greater pay off. Tenants have the right to live in a safe and habitable environment and any problems will come back on you. Ensuring that the property is fitted out to the best possible standards can provide a more cost effective option despite the additional administration, up front costs and time spent. However, those Landlords who do take simple steps such as having all services and appliances tested and making the time to carry out thorough routine inspections on a regular basis, have avoided potential problems and kept up good relations with their tenants. Ignoring problems can create additional ones which can result in expensive and time consuming legal action.
3. A proper Tenancy Agreement should be drawn up and reviewed.
It is becoming very common practice for Landlords to be relying upon pre-printed Agreements purchased off the shelf. However, those Agreements do not always provide the protection when it is most needed and often fail to cover important issues relevant to Landlords specific requirements. All issues should be thoroughly considered and incorporated into the Agreements as relying on the law to import terms into your Tenancy Agreement can be a gamble making enforcement harder and more costly.
4. Notices to Quit
Notices to Quit can be problematic as Nita King of Lemon & Co has advised upon previously in her article entitled “Assured Shorthold Periodic Tenancy : Landlords be aware of invalid notices” which can be found at www.lemon-co.co.uk. Ensuring that the correct Notice is used and correct dates are imported into the Notice is vital as failure can cause delays and extra costs.
5. Tenants should be vetted.
Where possible, an Application for Tenancy should be completed with references and Guarantees being obtained. Within the Application, details which may subsequently become vital should be requested, for example, employment and banking details. This way, should an issue of non-payment of rent arise use of the information available could prove vital to obtaining payment or enforcing a County Court Judgment. Considering and covering legal issues relevant to obtaining, collating and using personal data need to be considered and advice should be sought.
Here at Lemon&Co, our Conveyancing, Business Services and Litigation Departments can cover all your legal and practical requirements of becoming or being a Landlord.
This article gives a general overview only and the legal position at the time of writing this article. It cannot be relied upon in any particular case. Specific legal advice must always be considered to include consideration as to whether the legal position contained in this article has changed since going to print. For further information and advice, please contact Nita King or Marianne Johns on 01793 527141 or alternatively by email on Nita.King@lemon-co.co.uk or Marianne.Johns@lemon-co.co.uk.
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<p><strong><a href="http://www.lemon-co.co.uk/article_landlord-part1.php">Considerations For Landlords - Part 1</a></strong><br />
Owning property can be one of the greatest investments. With ever increasing house prices, large capital profits can be made in relatively short periods. Many owners have over recent years put their “assets to work” so to speak by renting out to tenants with a view to the additional monthly mortgage payments being met by third parties, possibly with a little extra on top. More often than not it works....</p>
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