Ways to be a good landlord — without being taken for a ride

DRAW UP A FAIR TENANCY AGREEMENT

Being a good landlord requires time, money and eff ort — but it will be rewarding if it helps you retain the right tenants.

A great tenant is priceless, and you may need them more than they need you — after all, they pay your mortgage. Here are the essential steps to becoming a model landlord:

ALWAYS PUT SAFETY FIRST

As A landlord, you have a legal obligation to ensure your property meets safety standards. gas and electrical equipment must be installed and checked annually by a registered engineer.

Make sure there are fire alarms and carbon monoxide alarms fitted. Check them regularly and replace batteries if necessary. And keep records.

if you don’t comply with the regulations, not only could you be putting your tenants at risk, but your landlord insurance could be invalidated. Be Clear on where the responsibilities lie for the upkeep of the property.

All this should be detailed in the tenancy agreement, known as the Assured shorthold Tenancy (AST). A letting agent or solicitor can help you draw up a tenancy agreement, or there are a number of templates available to download from sites such as the residential landlords Association ( rla.org.uk).

PROTECT YOUR TENANT’S DEPOSIT

LEGALLY you must keep a deposit in an approved deposit scheme that offers security for tenant and landlord.

There are three approved schemes to choose from and you must supply a tenant with the relevant information, i ncluding which of the authorised schemes you are using, how to apply to get the deposit back at the end of the tenancy, an explanation of the purpose of the deposit and what to do if there is a dispute.

if you fail to comply, or even delay lodging a tenants’ deposit, you can face legal proceedings and a fine of up to three times the amount of the deposit in question.

MAKE AN INVENTORY

An Inventory can take a long time and be pretty tedious to compile. But it is worth having s hould there be any any disagreements over damage done during the tenancy.

it details the contents of the property and the condition they are in on the day the tenant arrives. it should also list existing cosmetic blemishes or defects, such as peeling wallpaper or flaking paint.

you s hould be extremely thorough to protect both parties, taking photos of each room and of any existing blemishes. let your prospective tenant know there is photographic evidence of the pre-rental condition.

Take meter readings, too, so that you, your tenant and t he property’s existing energy provider has a record of figures and the date they were taken. you can take a photo of meters, too.

HAND OUT YOUR EMAIL ADDRESS

on THE day your tenants move in, take the time to demonstrate the workings of relevant equipment such as central heating, hot water, kitchen appliances and locks.

give them your mobile number and, better yet, include an email address where the tenant can reach you. This will help you keep a written record of communication between you and your tenant and could prevent too many late-night calls. Make sure you listen to tenants’ concerns. Under no circumstances ignore them. They will be searching for a new property in no time.

BE A QUICK FIXER

More than half of l andlords ( 51 per cent) manage their property portfolio by themselves, according to Paragon Mortgages. Those who go it alone should stay on top of repairs.

nothing makes a tenant unhappier than when problems aren’t addressed quickly.

Have a shortlist of reliable tradesmen who can fix problems at short notice. if you do decide to go with a letting agent, it is essential you choose a good one who deli vers t he best possible value for your money, as well as a good service to t e nants. Make it clear you expect a top quality service. After all , you’re paying them a pretty penny.

DON’T BE CHEAP . . .

REFUSING to repaint, re-carpet, or upgrade necessary appliances for a great tenant could be a false economy. This doesn’t mean pandering to their every interior design whim. But if you don’t maintain the place for the good tenant you already have, you’ll have to have the work done when they leave to attract new tenants anyway.

AND DON’T BE A NUISANCE

MAKE sure that once your tenants are moved in, you keep your distance. Tenants don’t want to be hassled by their landlord.

As their landlord, you have rights to enter the property, giving at least 24 hours’ notice. But you must let tenants feel like it is their home to enjoy. Having to prepare for landlord check ups on a regular basis will get on their nerves.

BE WARY OF RAISING THE RENT

Trying to increase rent is a risky game, as it could prompt your tenants to leave. A change-over can be expensive by the time you factor in the cost (not to mention hassle) of arranging viewings, credit checks and new tenancy agreements. so unless you’re certain putting up the price is necessary, it’s best to leave it.

JOIN A SCHEME FOR LANDLORDS

IT is not a legal requirement to become a member of a landlord accreditation scheme, but it is a good sign for a tenant if a landlord has made the effort to join up — and shows a commitment to professional development.

The national landlords Association has a code of practice which is designed to raise and maintain standards in the private-rented sector. visit landlords.org.uk

The residential landlords’ Association has useful tenancy documents you can download and has a range of services, including help with tenants’ deposits or evictions. see rla.org.uk

WHAT TO DO ABOUT PETS

LANDLORDS may worry about potential damage by animals to their property, but could potentially turn away valuable tenants by banning all pets. After all, what damage can a goldfish do?

you could advertise your property as ‘pets considered’ and take each prospective let on a case-bycase basis. you could add in a clause to the tenancy agreement to ensure tenants are responsible pet owners and ask for a higher deposit to lodge with your chosen scheme, adding the specific pet clause to the agreement.

if you have a leasehold property, check whether the lease restricts pets, plus the animals’ impact on neighbours and visitors. if you allow a tenant to keep a pet, make sure you specify which pets you have given permission for — and how many. And that if a tenant wants any extra animals, they must get written permission first.

insist the tenant has the property professionally cleaned, especially the carpets, when they move out.