These days, there are many landlords out there, but not all are equal. It is important for landlords to make good decisions that don’t affect their profitability and professional reputation.
You will always want to maximise your return on your investment, be a responsible landlord, and build a positive reputation, but this is easier said than done.
It is helpful to be aware of the most common mistakes that landlords make, so that you can avoid them. By avoiding these mistakes, you will build good tenant relationships and boost your chances of achieving your goals.
Poor tenant screening process
A poor tenant screening process is one of the most common mistakes – and one that can cause a great deal of anguish.
Bad tenants can be a nightmare for a landlord, they will make your job a lot harder. The process of having to evict a tenant is painful for all involved and can be very costly for landlords, far better to do everything you can to get a good tenant from the get-go.
Approaching screening with a robust strategy will help you find tenants who will pay the rent on time, look after the property, and report issues promptly.
This will typically mean credit checking the tenant to understand if they manage their finances well, getting feedback from previous landlords/letting agents on how they behaved as a tenant and contacting tenant employers to confirm their work status and income.
Poor communication with tenants
Another tenant-related mistake is poor communication. Having strong lines of communication is helpful for identifying and resolving issues as well as building a strong relationship.
You do not want to and should not interfere with their lives or constantly be on the phone, but it is helpful to be in regular communication and attempt to build positive, friendly relationships to avoid issues down the line.
This is something that might be done through a letting agent if you appoint one.
Drastic rent increases
It is understandable that landlords have to increase rent in line with any rising costs they incur, but big increases can drive good tenants away. This means that you have to find reliable tenants once again, which is easier said than done, and the property could be vacant for a while – this could end up costing you more in the long run.
Therefore, try to keep increases to a minimum and if a good tenant feeds back that a proposed rent increase will be unaffordable for them, see if you can reach an acceptable compromise.
Not using specialist mortgage brokers
When it comes to purchasing a property to rent out not using specialist mortgage brokers to help you find a mortgage can make life difficult. Specialist brokers will have access to a wide range of deals from high street banks and specialist UK lenders can help you get deals that may otherwise be hard to find.
They can also simplify the process of obtaining a buy-to-let mortgage and help you find the right product based on your individual circumstances. Of course, there are fees to factor in, and you must understand the risks of taking out a secured loan.
Your property may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.
Summing up
These are the most common mistakes made by UK landlords. These mistakes could prevent you from earning as much money as you could, make your job a lot harder than it needs to be, and damage your reputation. By avoiding these mistakes, you will significantly improve your chances of finding success as a landlord in the UK.
