According to recent data, 400,000 of the UK’s 1.5 million landlords have had their property damaged by tenants in the past 12 months. To help you avoid becoming a statistic, we’ve come up with five useful suggestions on how to minimise the risk. We are property investment firm based in London that will guide you to buy the right property for you.
Checking references
If you are renting your property to a stranger it is absolutely essential to carry out a reference check on their past rental history. Asking them for the contact details of a previous landlord is completely acceptable. A quick call or email will then confirm whether or not they were responsible tenants and if the previous landlord would recommend them again.
Taking a deposit
Deposits are a form of insurance which can be withheld if property is damaged during the rental period. Deposits are generally a month’s rent however this can vary from landlord to landlord. In the UK, any taken deposits are legally required to be held by a certified third party. This ensures that any disputes are dealt with quickly and fairly.
Have a landlords insurance policy in place
As well as covering scenarios such as structural damage and fire/flood, a comprehensive landlords insurance policy will cover the cost of any damage caused by tenants. This could be anything from broken windows and holes in the wall to annihilated gardens and graffiti.
Add on rent guarantee insurance
To eliminate the risk of missed rental payments, adding rent guarantee insurance to your policy is a savvy move. It will give you the complete peace of mind that should your tenants fall into arrears, your rental payments will still keep rolling in. This is particularly useful for landlords that rely on rent to pay off a mortgage.
Writing down an inventory
If you are leasing a furnished property it is always advisable to take a complete inventory of everything that is present at the time the keys are handed over. Include a list of physical items as well as a small description of the condition they are currently in. The list must then be confirmed by the tenant and can then be used as a useful reference points should any disputes arise over missing/damaged items.
Draw up a lease document
Whether you’re renting to a friend or a stranger, it’s essential to draw up a legally binding lease document which dictates important factors such as monthly rent, agreed length of contract and household rules. This will help clear up any disputes that may arise and could become a key piece of evidence in the case of any legal disputes.
By following these six rules of thumb, you can minimise the risks of being a landlord and ensure that your experience is as smooth and stress free as possible.
