Becoming a landlord in London can be a lucrative and rewarding experience, but it’s essential to understand the challenges you’ll face before making the leap. This blog post will discuss ten things you need to know before you begin your venture as a new landlord in London.
The London rental market is highly competitive, and prices are high. To succeed, you’ll need to stick to a manageable budget and be familiar with tenancy laws. A lot of paperwork is involved in setting up your property for rent, and you’ll be competing against other established landlords.
Despite these challenges, starting a career a landlord in London can be a great way to generate income and build your portfolio. If you’re up for the challenge, read on to learn more about what it takes to be a successful landlord in London.
- The London Rental Market is Strong; Demand Still Outweighs Supply
- Familiarise Yourself with the City’s Competitive Property Market
- Set a Manageable Budget – London’s Business Rates and Costs are High
- Get organised and Begin the Paperwork Needed to Set Up as a Landlord in London
- Learn about Tenancy Laws and How Best to Protect your Investment
- Study Your Competition – Established Landlords Will be Tricky to Deal With
- Utilise a Removal Company to Reduce Costs and Offer Affordable Workspaces
- Keep on Top of Repairs and Maintenance – Look for Local Repair Shops in Advance
- Consider All Your Options – Airbnb and Short-Term Rentals are Lucrative
- Government Housing Schemes – Buy-to-Let Option to Help Upfront Costs
- Aussie Man & Van – Reducing the Cost of Being a Landlord in London
The London Rental Market is Strong; Demand Still Outweighs Supply
Landlords are still in high demand in London, as the city has one of the strongest rental markets in the world. There is plenty of demand for rentals, and landlords can typically charge higher rents than in other cities. Admittedly, it would be wise to do plenty of research and position yourself suitably to avoid being too cheap or overpriced.
To successfully start your career as a landlord or landlady, undertake plenty of property scouting. You’ll need to find the ideal area where house prices are steady or on the up. Key indicators, such as crime and employment levels, factor into the pros and cons for each postcode. Furthermore, regeneration districts attract lots of interest from city workers.
Another point to consider – renovating a property is an excellent way to bag a bargain. That said, the workload and project management are enough to put most of us off. If you want to explore it, attend some property auctions to get a feel for prices and the process.
Familiarise Yourself with the City’s Competitive Property Market
As a new landlord, it’s important to be familiar with the competitive property market in London. Other landlords are always on the lookout for opportunities, so you’ll need to be quick to act if you find a suitable property. That means having your finances in order, so start putting together a business plan now. Discussing your goals with your bank might also be beneficial to see if there are financial options available.
It’s wise to enlist the services of a seasoned estate agent – they’ll be able to filter out unsuitable properties and arrange group viewings for the ones that fit your needs. With their help, you’ll be one step closer to finding the perfect property for your portfolio.
Set a Manageable Budget – London’s Business Rates and Costs are High
Setting a budget for your business is critical, but considering London’s high costs, it can be tricky to do.
There are a few key things to keep in mind when creating your budget:
- Consider your workspace – whether you rent commercial space or use a home office – and factor in the cost of living and doing business in London.
- Vehicles are another considerable expense, so be sure to cost out purchase or lease options fully.
- Other costs such as marketing, materials and labour should also be considered.
Creating a detailed business plan is vital in getting your business off the ground. It doesn’t need to be perfect – you can edit and improve as you learn of new costs. The most significant benefit of having a business plan is that it allows you to perform a SWOT analysis, which identifies any weaknesses in your plan and helps address them.
Get Organised and Begin the Paperwork Needed to Set Up as a Landlord in London
Becoming a landlord is a big decision, and getting the administrative side of things in order is crucial before you take the plunge. This includes applying for permits and licenses from your municipality, as well as utilising the resources of your local council for information on funding and regulatory guidance.
It’s also important to attend networking events and other corporate bodies, such as the Chamber of Commerce, to learn more about what resources are available to you as a landlord. By getting the administrative side of things in order now, you’ll set yourself up for success.
This week’s task: research the paperwork needed to set up as a landlord in London. This includes applications for permits and licenses and any other forms your municipality may require. Once you have a complete understanding of the paperwork involved, begin filling out the necessary documents and applications. If you have any questions, contact your local council for guidance.
Learn about Tenancy Laws and How Best to Protect your Investment
Landlords new to the game in the UK would do well to acquaint themselves with tenancy law. It’s not as simple as buying a property and choosing whether to use an agency or seek private tenants; there are codes and compliance to adhere to or risk being shut down.
Additionally, you’ll need to abide by sound deposit scheme practices that comply with the UK government framework. Landlords must comply with government regulations on using a deposit scheme and being transparent about charges. This ensures that they treat their tenants fairly and that both parties are protected. Deposit schemes protect landlords from any financial losses that may occur when a tenant moves out, and they also ensure that tenants are able to get their deposit back in full when they leave.
The best landlords are the ones that treat their tenants with respect and vice versa. Start by understanding and adhering to their rights from day one. By doing this, you’ll become a landlord or landlady that people actively want to rent from.
Study Your Competition – You Should Copy Best Practices from Successful Landlords
Landlords must be aware of their competition and actions to stay ahead. It’s important to know who your competition is and what methods they use to promote and run their businesses. You can learn a lot by studying what other landlords are doing and copying the best practices from those who have been successful.
Looking at the rental market is a good place to start. You can get an idea of the guide prices for rent in each part of London and where to position yourself when you have an available property. You can also look at how other landlords promote their business so you can copy their approach.
By keeping up with your competition, you’ll be able to stay ahead of the game and run a successful rental business.
Utilise a Removal Company to Reduce Costs and Offer Affordable Workspaces
Landlords often have to juggle many responsibilities, from finding and screening tenants to maintaining the property. One task that can easily be overlooked is transportation. Furniture and appliances need to be moved in and out of the property, but this can be expensive and time-consuming if done incorrectly.
Removal companies like Aussie offer an affordable and efficient way to transport furniture and appliances. We work with landlords regularly, so we know what needs to be done to save time and money. For example, we can provide short-term storage space as a workspace for landlords who only need it occasionally. This helps keep costs down while still providing all the necessary amenities.
Keep on Top of Repairs and Maintenance – Look for Local Repair Shops in Advance
As a new landlord, it’s important to start building your network of service providers early on. This includes finding reliable repair shops and other service providers who you can turn to when something goes wrong with your property. Getting quotes from a few providers will help you compare prices and services and give you peace of mind knowing that you’re prepared for any eventuality.
Additionally, this information will help you create a more accurate business plan, as you’ll know exactly how much you need to set aside for repairs and maintenance each month. Checking online reviews is an excellent way to narrow your options and find the best providers in your area. We’re proud to say that we’re a five-star rated removals company on Google, so if you’re looking for a removals partner, look no further than Aussie.
Consider All Your Options – Airbnb and Short-Term Rentals are Lucrative
Landlords should consider all their options when renting out their property. This includes the lucrative short-term rental market, which is becoming increasingly popular with travellers.
Sites like Airbnb and the Plum Guide offer an attractive alternative to long-term rentals, as guests can enjoy the convenience and comfort of an at-home setting while in town. If you have a property close to the main attractions in London, it’s possible to make a tidy profit from short-term rentals. You then have the same options for using Aussie for collections and deliveries to lower costs.
So, if you’re considering renting out your property, explore all your options and see which is the most profitable for you.
Government Housing Schemes – Buy-to-Let Option to Help Upfront Costs
Government-backed housing schemes are created to help first-time buyers, new landlords and low-income earners onto the property ladder. The buy-to-let option is one such scheme designed to help those looking to rent a property for the first time. With the rising cost of living expenses and other commodities increasing, these types of housing schemes could make all the difference.
The best way to determine if you’re eligible for the buy-to-let scheme, or any other government housing scheme, is by discussing it with a mortgage broker. They will be able to provide you with all the information you need and guide you through the process.
Aussie Man & Van – Reducing the Cost of Being a Landlord in London
You’ve big plans to make your mark as a landlord in London, and we can help you get started. The Aussie team is made up of professionals dedicated to providing high-quality services at affordable prices for all our customers who have that same vision. Let us take care of the details, so you don’t have to!
Becoming a landlord is not easy, but it can be a rewarding job. And with Aussie to partner with, we’ll help you create the perfect company on a budget and deliver high service standards.Click here, and we’ll discuss what removal and related services are popular with the landlords we currently work with. We can also give you a free, no-obligation quote to use in your business plan.