Want to be a successful landlord in Cumbernauld?
Become a landlord in Cumbernauld - Seems like a great idea right?
Perhaps you’re relocating for a job but want to hold onto your existing home, or maybe you've become an unintentional landlord by inheriting a property and now want to generate an income from it.
Whatever the reason is for becoming a landlord in Cumbernauld, the following tips will help answer the questions on how to begin and aim for success.
1. Think of it as a business
If they had the money, just about everyone would purchase a few houses, rent them out and live a hassle-free life and enjoying the income.
In theory it's a fabulous idea, but in the majority of cases the outcome is not this simple. Becoming a successful landlord and owning rentals in Cumbernauld doesn’t just involve waiting for the rent credit to drop into your bank account each month. There are taxes to consider, regulations to adhere to, tenants to manage plus maintenance to carry out and pay for.
Being a landlord can of course be a great source of revenue, but you shouldn't be fooled into thinking it’s an easy way to make your fortune with minimal effort. It can be just as time consuming as running your own business.
Buy a property in Cumbernauld, market it online and just wait for the applicants to come rolling in? Perhaps occasionally you may get lucky and this could be all that's needed, but this is a very rare occurrence.
Prior to embarking on your journey to become a landlord in Cumbernauld, its imperative to perform due diligence into the state of the rental market in Cumbernauld and its pocket areas. Many of these can be rental hotspots with potentially excellent returns but others may be a little disappointing with lesser demand for rental properties.
With this in mind, take the time to research how much other similar properties in Cumbernauld are achieving, as this will give you an indication of your potential returns.
The condition of the property you intend to rent out in Cumbernauld should also be considered. If you’re planning to move out of the area and let your property to tenants, you’ll also need to ensure that all those jobs that have been put off have now been fixed before they move in. There's nothing worse than following your own move, you're forced to take phone calls about broken hinges, drafts from windows or leaking taps.
3. Calculate monthly budgets – including void periods
Being a landlord with properties in Cumbernauld can be lucrative, but it can also very quickly become a drain on your finances. It is crucial to calculate all of the costs that you will incur letting out properties before deciding whether being a landlord in Cumbernauld is suitable for you. If your property is mortgaged, then this will be your largest expense monthly and you’ll need to account for potential void periods where the property could be vacant and not generating an income.
During these voids, you’ll have costs including council tax and utility bills to cover, so it’s crucial that you work out how much all of these expenses will add up to each month. and whether they would be affordable.
As a final thought, don't forget to have a contingency fund prepared for those one off and unexpected costs, such as a new boiler or windows.
4. Permission to rent?
Your mortgage agreement may contain restrictions on letting out your property. As a landlord, it may be necessary to switch to a ‘buy to let’ mortgage to be able to rent it out. Along similar lines, if you purchased your property via a shared ownership scheme, it’s unlikely you’ll be able to rent it out without speaking to the housing association first.
To be safe, it’s best to check with your mortgage provider prior to implementing your plan to become a landlord as you don’t want to encounter issues further down the line.
5. Marketing the property
When it comes to marketing your property in Cumbernauld, you should consider whether to include agreement clauses for pet ownership, whether you'll allow smokers/vapers and whether to rent the property out as furnished or unfurnished.
You’ll also need to choose whether to rent through a lettings agent or to manage it yourself. Using a lettings agent will result in an additional expense each month, but this does have the clear advantage of taking away all the stress of dealing with tenants directly, checking their references/history and ensuring you remain within the regulations. Ultimately this will make your life far simpler and not expose you to risk of operating outside of the law.
6. Check legal responsibility
Finally, but most importantly - you will need to be compliant with regards to the legal responsibilities attached to renting out a property in Cumbernauld.
There is a significant amount of regulation and law that need to be complied with to avoid potential prosecution. This includes making sure the property is fit for human habitation, that it has a gas and electrical safety check carried out regularly, has an Energy Performance Certificate (EPC) in place and is also fitted with specific and functioning smoke and carbon monoxide alarms.
This is just a small portion of the guidance Yendor Homes can provide in order to ensure you're making the right choices and staying legal. For all landlords, be they clients of ours or not, we are happy to provide free advice based upon our experience and industry accreditation, helping you as you embark upon your landlord journey in Cumbernauld.
If you'd like assistance with all of these responsibilities, Yendor Homes are offering some incredibly low management fees and offers for new landlords. We'll deal with everything and you can simply relax and collect the income each month. If you're already a landlord, we're also offering some exceptional deals for transferring your property or portfolio to us.
No need to wait until your current tenant has moved on or for lots of daunting paperwork to deal with. We'll liaise directly with your current letting agent and organise the transfer seamlessly on your behalf.
For any advice or questions on being a landlord in Cumbernauld, please contact us today for a free consultation.
Want to become a landlord in the Cumbernauld area? Buy Sell Rent - Cumbernauld - Yendor Homes are your local property experts in Cumbernauld. Call us on 01236 316004 or email email@example.com to have a chat with us. We were (and still are) landlords for over 20 years and know the process and requirements, whilst avoiding the pitfalls, to make your property journey a success!