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How to become a landlord in Chepstow
If you are considering becoming a landlord and looking at the Chepstow location, find out the pitfalls and how to avoid getting into trouble.
If you are considering becoming a landlord in Chepstow, there are several key considerations to keep in mind:
- Legal requirements: There are various legal requirements that landlords in Chepstow England must comply with and these are different to those for landlords in Wales. Make sure you understand these requirements and are prepared to meet them.
- Rental market: Consider the demand for rental properties in Chepstow and whether your property is likely to attract tenants. Currently, rental stock is in short supply, so it is a great time to rent out a property, but please speak to us first as the market can change quickly.
- Property management: You will need to decide whether you want to manage the property yourself or hire a property management company like Homelink to take care of things for you. It can be complicated and ever-changing, plus management fees are tax deductible, so it is certainly worth consideration and we’d love to speak to you regarding our service.
- Insurance: It’s important to have landlord insurance to protect your property against damage, liability, and loss of rental income. If your rental property is furnished (even with just carpets, curtains or white goods) you are advised to have these insured and we can point you in the right direction.
- Tenant screening: When choosing tenants, you should conduct thorough tenant screening to ensure they have a good rental history and can afford to pay the rent. You will also need to check that your tenants have a right to rent in the UK. Of course, we will do this for you as part of our lettings service.
- Taxes: As a landlord, you will need to pay income tax on your rental income. Make sure you understand your tax obligations and keep accurate records. If you are overseas, please speak to us regarding the non-resident landlord scheme.
- Maintenance and repairs: You will need to be prepared to handle maintenance and repairs on the property, or have a plan in place for dealing with them in a timely manner. Your rental property must be fit for human habitation.
Overall, becoming a landlord in England can be a rewarding investment opportunity, but it requires careful planning and consideration of the legal and practical aspects of property ownership and management.
The Pitfalls
And why you should use a regulated letting agency to help!
When becoming a landlord in Chepstow or anywhere in England, there are several pitfalls you should be aware of and try to avoid. This is the main reason that most professional landlords chose to work with a regulated letting and property management agent, such as Homelink Lettings, who will take care of the entire process in a legal and comprehensive manner, giving you complete peace of mind and more time to get on with what you enjoy, rather than dealing with tenancy issues (let’s face it, they always happen at the most inopportune moments!!):
- Not understanding legal requirements: As mentioned earlier, landlords in England must comply with over 170 pieces of legislation. Failure not to comply can easily result in legal action, or even imprisonment, we hear about this omissions or errors every day, and there is no justification for “not knowing”. Make sure you understand all the legal requirements and comply with them.
- Poor tenant screening: Choosing the wrong tenant can lead to missed rent payments, property damage, and eviction. Make sure you conduct thorough tenant screening, including credit checks, references, and employment history. It is also advisable to consider having legal insurance and rent protection because things can change and this will mean you are not out of pocket if it takes months to evict a non-paying tenant.
- Poor property management: Neglecting your property or failing to address maintenance issues promptly can lead to unhappy tenants and reduced rental income. Consider hiring Homelink as your property management company, we will take care of your investment with kid gloves and do our very best to ensure that you have a happy tenant and a smooth tenancy.
- Not having adequate insurance: Landlord insurance is essential to protect your property against damage, liability, and loss of rental income. Make sure you have adequate insurance coverage.
- Not keeping accurate records: As a landlord, you will need to keep accurate records of income and expenses for tax purposes. Failure to do so can result in penalties or legal action. If we are acting as your management company we will provide you with financial statements to easily complete your taxes.
- Overestimating rental income: It’s important to research the local rental market to get an idea of what rental rates are typical for similar properties in the area. Overestimating rental income can lead to financial difficulties if you are unable to find tenants or if tenants are unable to pay the rent. As long-established letting agents in the Chepstow area and along the M4 corridor to Newport in Wales, we can provide you with accurate pricing and comparable evidence to ensure you get the correct price for your property.
- Failing to plan for unexpected expenses: Owning a rental property can come with unexpected expenses, such as repairs or maintenance. Make sure you have a plan in place for handling these expenses. If we are your managing agent we will hold a float to cover any issues.
By being aware of these potential pitfalls and taking steps to avoid them, you can increase your chances of success as a landlord in Chepstow, and Homelink is available to help you get things right. You can make a general enquiry using the form below, or give us a call on 01291 470126.