With mortgages remaining out of reach for many first-time buyers and the UK rental market growing, there’s never been a better time to become a landlord. Here are some key considerations before starting your property journey.

Location Matters

One of the most important factors when buying property, especially for renting out, is location. You need to ensure the property is in a desirable area with good transport links, schools, and outdoor spaces. Renters can be very selective, so choosing the right property can help keep vacancy rates low. Additionally, consider the local clientele. For example, if you’re in a student area, rental income might be lower. It’s fine to cater to students, but be mindful of investing in high-end furnishings in such locations.

Legal Requirements

When renting out property in the UK, meeting safety standards is crucial. You need to have a Gas Safety Certificate updated annually and an Energy Performance Certificate. There are also regulations around damp treatment, maintenance, and fire safety. If you use a rental agency, they can assist with this; otherwise, consulting a solicitor might be worthwhile.

Choosing Tenants

Finding reliable tenants can be one of the most challenging parts. You want tenants who will take care of your property, pay rent on time, and maintain the place. There’s no foolproof method for selecting tenants, but asking for references from employers and previous landlords can help. If a potential tenant is unwilling to provide these details, it might be best to look elsewhere.

Plan for Difficulties

Always plan for potential difficulties, such as repairs or vacant periods. Don’t solely rely on rental income and ensure you have funds set aside for property upkeep. Although being a landlord can be exhausting, the rewards can be substantial. Good tenants can provide a steady income stream for years, and once the mortgage is paid off, you’ll own the property outright.

After being a landlady in a student town for five years, I found that renting each room separately and including all bills can increase rental income. This helps tenants budget better, and buying furniture second-hand keeps costs low. Any extra income each month is reserved for covering bills in case a room remains vacant. By having separate contracts for each room, the chances of all rooms being empty simultaneously are reduced. Tenants also screen potential new roommates, which ensures they get along well before I make a final decision.

Do you own rental property? What has your experience been like?