How to become a landlord

Renting out property is a great way to generate additional income, but it also comes with its own set of legal requirements and responsibilities.

Understanding what you need to do when you take on tenants will help you avoid some of the potential pitfalls of being a landlord.

Do your homework

Before you get started, it’s important to do your property homework. Speaking to a local letting agent will give you a good idea of what the rental market is like, how much work you might have to do to get a property ready to rent, and the sort of return you could expect.

As well as considering what’s involved, also think about the costs of being a landlord. This includes repairs and property maintenance, ongoing safety and (where applicable) licensing requirements, as well as letting agent fees if you use one. There are also tax implications on any profit you make.

Additional costs will crop up if your property stands empty between tenants. Without a tenant, you’ll need to cover the energy and water bills plus any council tax on the property.

Landlord responsibilities

You should be aware of your responsibilities as a landlord. First and foremost, your rental property must be safe for your tenants. This includes fitting and testing smoke and carbon monoxide alarms, as well as making sure all gas and electrical equipment is safely installed and maintained.

There are also rules when it comes to finding tenants. You’ll need to check any potential tenants can legally rent your property and, if they do become tenants, use a government-approved scheme to protect their deposit.

You’re required to provide them with a copy of the How to Rent checklist too. This runs through their rights and responsibilities and is available on the government website.

Protecting your rental property

Landlord insurance is essential when you rent out a property. This is designed specifically for rental properties, meaning they would be repaired or rebuilt in the event of a loss such as a fire or flood. It can also provide cover that’s invaluable for landlords.

This can include liability cover to protect you if someone has an accident at the property. It can also cover you for loss of rental income cover, which provides you with an income if your property can’t be rented out as a result of damage. There could also be alternative accommodation cover, if your tenants need to be rehoused while your property is being repaired or rebuilt following a loss.

Becoming a landlord can be a great way to boost your earnings but it’s essential that you’re aware of all your responsibilities before letting a property.

Co-op Insurance can help you arrange suitable cover. Visit our residential landlord insurance page to find out more and get a quote.