Being a landlord in London can sometimes feel like a minefield. Common mistakes such as setting the wrong rental price, lack of regular property maintenance and choosing the wrong tenants are easily made – but can be costly.
At J Property Management, we are experts in managing South London properties. Here, we share the top mistakes that landlords make and, more importantly, how you can prevent them.
1. Setting the Wrong Price
A property is an investment, and when priced right, it can be a great, stable source of income. However, if left empty, it can become an expensive asset.
If you find that your listing isn’t attracting any tenants, you’ve probably priced it wrong.
And we understand why: setting a rent price can be tricky – you want to make the price low enough that you attract tenants and ensure occupancy, while still setting it high enough to cover costs and make a profit.
And it’s not just setting the price too high that’s the problem. If you set the price too low, you risk attracting lower-quality tenants. Setting the price lower than the rest of the market could encourage applicants with less financial stability. Not only that, but it’s a bad idea from a profit point of view, too.
On the other hand, setting the rent price too high could deter potential tenants. If they see that what you’re charging is higher than similar properties in the area, they are unlikely to want to pay what you’re asking.
So, what’s the solution?
Take time to look at the rental prices for similar properties in your area. Property type and size, facilities and location will all impact the price you can charge. An even quicker and easier option is to use a free online valuation tool, which will give you a minimum and maximum rent price for your property based on a range of factors.
2. Lack of Thorough Tenant Screening
Failing to thoroughly screen your tenants is one of the biggest mistakes you can make as a landlord. While it is tempting to fill vacant rooms and gain quick profit, choosing the wrong person can be very expensive in the long run.
When you bring a tenant into your home there are 2 main things you’ll want to know:
- Will they pay rent on time in full?
- Will they look after my property?
On top of ensuring that they are legally able to live in your property (through identity checks and additional documentation checks for international tenants), you will want to check their financial stability by asking for proof of income, as well as trying to find out what type of person they are. All this will help you decide if they are going to be a reliable and trusted tenant.
Financially, you will want to see proof of income to know that they will be able to meet rent payments each month and continue to pay in the long run. It’s common to ask for the last 3-6 payslips, a work contract with the relevant information or a letter from their employer. For self-employed tenants, you will want to look at their income over a longer period to confirm that it is stable and that there is consistently enough money to cover rent payments.
If you want to be sure that they will look after your property, you could also ask for a character reference. This is usually written by a friend, family member, colleague or even former landlord to vouch that the person is responsible and trustworthy.
Screening tenants can be laborious, but it is an important step for safeguarding your property in the long run.
If you think it sounds like too much work, why not outsource tenant sourcing to us? At J Property Management, we thoroughly screen every tenant who applies – managing applications, viewings and tenancy agreements. We’ll take care of any relevant background checks and references and aim to get a tenant into your property within 11 days. We know that your property is a key asset, which is why we want to find tenants who’ll look after it like their own.
To find out more about our tenant sourcing service, contact Jessica at info@jpropertymanagement.co.uk.
3. Failing to Adhere to Legal Requirements
As a landlord, there are a range of different legal obligations to adhere to. And, to make it more complicated, they are constantly changing and updating. From safety standards to tenant rights, there is a lot to be aware of. Not keeping up with these responsibilities can lead to potential legal disputes and fines.
Safety
One of the key responsibilities of a landlord is to ensure that their property is safe for tenants to live in. This includes ensuring that the property is structurally sound, free from damp or mould and appropriately ventilated. It also involves checking that all gas and electrical equipment is safely installed and maintained. Additionally, the property must comply with all fire safety regulations.
Maintenance
The landlord is responsible for handling any repairs to the structure of the property or its exterior. It is a good idea to have regular property inspections in place to ensure that everything is in good condition. The sooner you spot an issue, the sooner you can get it repaired – without it escalating into something more serious.
Sustainability & Energy
As well as having to provide a valid EPC (Energy Performance Certificates), there will be more pressure on landlords going forward to have an energy efficient property. Getting ahead of this in advance can help landlords in the long run.
Fairness
There is an ongoing push to reduce discrimination in the rental process which landlords should be aware of. When getting tenants in, equality should be prioritised and all applicants should be treated the same.
Right to rent
It is the legal responsibility of the landlord to check that the tenant legally has the right to rent in the UK.
To avoid this key mistake, landlords should familiarise themselves with all landlord-related legislation and local regulations. Working with a property management company like J Property Management can lift the burden. We handle the legal side, ensuring that our landlords are up-to-date with all legislation to avoid costly fines or legal action.
4. Falling Behind on Property Maintenance
Not running regular inspections on your property is a big mistake and one that could cause a great deal of trouble in the long run. Minor problems can quickly turn into major issues if they are not caught early. If you conduct regular checks, you can tackle issues such as leaks or damp before they become something more serious.
Regular property checks can also help landlords ensure that the current tenants are taking proper care of the property. Consistent check-ins can also help landlords spot issues like unauthorised subletting before they lead to potential legal complications.
5. Not Having a Clear Tenancy Agreement
A clear tenancy agreement between landlords and their tenants is incredibly important. It means that both parties know what their rights and responsibilities are and helps avoid confusion.
Not having a clear tenancy agreement in place can give rise to disputes and potential legal action in the future. If everything is laid out clearly from the start, in writing, it safeguards both the tenant and the landlord. For landlords, it is hugely important to know what falls within the remit of their responsibilities and also ensures that they don’t unknowingly breach the contract.
At J Property Management, we can handle all the tenancy agreements so that you don’t have to. We also meet with the tenants to make sure there is full understanding of what they are signing.
How to Avoid Common Landlord Mistakes
Don’t want to fall into the common London landlord traps? We’ve got you covered.
At J Property Management, we work with hundreds of South London landlords to handle their property management needs. Whether it is helping you set the right rental price for your property, sourcing responsible tenants or keeping up with new laws, we’ll be there with you every step of the way.
Contact the team today to find out more at info@jpropertymanagement.co.uk.
