Top-Tips for Buy-to-let Investors

One would assume that an economic downturn effecting house sales would be the perfect situation in which a renter with a buy-to-let philosophy would prosper. This is not entirely true, because the downturn is affecting the job markets in such a way that rent arrears have become more prominent than repossessions. The rules and regulations of the buy-to-let market protect the vulnerable, which in most cases is the tenant. Landlords are finding their hands are tied.

Sufficient Paperwork

Managing a buy-to-let property can be a difficult and time-consuming matter, especially if this is just a sideline, and not your full time job. The laws protecting tenants could put you in the precarious position of being owned rent arrears, and there may be nothing you can do about it. It is very important you sign a tenancy agreement and have a witness oversee the process. A standard agreement is usually a fifteen or twenty page affair, which you can download from a number of websites, but make sure every page is signed and dated by yourself and the tenant. The agreement will cover all eventualities of a tenant’s stay, including which issues are the responsibilities of which party. It is essential to get every issue in writing, so that no confusion will take place in the future. The agreement will not only protect you, it will protect the tenant as well, which makes the document essential for both parties.

Inventory Lists

Before you let the property, it is important you make an inventory list, with detailed photos of every item to back up your story. Both parties will be expected to sign the list, and the rental agreement will already show whose responsibility it is to deal with breakage or wear and tear. This will ensure you are in the driving seat if problems arise. The courts will see this and back you up to the hilt. Because the UK buy-to-let laws were drafted to defend the vulnerable, you will need to identify the possible problems that lay ahead, so you can include clauses in the rental agreement that protect you from harm. Obviously, in the name of health and safety, you will be held responsible for accidents that may arise from faulty electrics or gas boilers, so you will need the correct checks to be carried out and the right certificates in your possession.