So you've come along to Clear Property Investment and you've decided that pouring your cash into property is for you.
It seems a sure-fire bet and a far better way to grow interest than investing in bank accounts. And you're right.
But it’s not quite that simple. For instance, at Clear Property Investment, we’re well aware that there's also a certain amount of responsibility that goes along with being the landlord of a property.
Your tenant has to take care of the rent, council tax, phone/internet connection, TV rental and utilities charges, but YOU are liable for factoring and upkeep/maintenance costs.
You should also be aware that you'll need a Letting certificate from your local Council (the cost of this varies from Council to Council but averages around £60). This is to ensure your flat is habitable and complies with fire safety regulations. You'll also have to run through the fire drill with your tenant and supply a smoke alarm and fire extinguisher.
It's also a good idea to let the tenant know about cleaning services (in many flatted cases communal cleaning is organised by the Factor). It might also be prudent to advise your tenant on the number of a window cleaner and gardener (after all you want them to look after your property).
Myra Blaik, Operations Manager, Clear Group Scotland Ltd, said: "Many investors rightly do all the hard work and research prior to purchasing their property then sit back - once contracts have been signed and leases agreed - and believe the part they play is now over. Really, it’s only just beginning. Leasing property is like investing in any other business, it’s essential to keep your hand in and ensure the company runs smoothly.
"That means taking an interest in how your investment is doing such as ensuring the property is well-maintained and your tenants are fulfilling their lease conditions. For instance, you don't want a tenant moving a 'friend' in. Unfortunately, this happens frequently in student accommodation. You also want to ensure your tenants haven't done any 'unscheduled' re-decorating such as installing a shower, adding extra wall lighting or knocking down part of a wall (it has happened!). And God forbid - they haven't become an animal sanctuary and moved in ten cats!"
In addition, have you checked out who your tenants are and are you happy with them? If they're young party animals, do you really want your property to be the venue for loud, thumping music and up to 30 visitors every Saturday night? It goes without saying the neighbours wouldn't be happy. And really you want next door on-side, particularly if they're prepared to keep an eye out on your property and report any misdemeanours to you.
And, have you checked out your tenants' references? You want to make sure you’ll receive rent every month, regular as clockwork. Get references from previous landlords (if any) to see if your tenants have a good credit history and that they left the property in a decent state.
Check out your rights ie what you can do to remove a tenant if you're not happy with them (see the Clear Property Investment article How to Remove a Bad Tenant).
We've highlighted some of the things that can go wrong but on the whole investing in property and letting it out is a great way to maximise your income and doesn't cause too many problems. But be minded, YOU have to play an active part in your investment too. For, like many things in life, you’ll only get out what you put in...
Ends
It seems a sure-fire bet and a far better way to grow interest than investing in bank accounts. And you're right.
But it’s not quite that simple. For instance, at Clear Property Investment, we’re well aware that there's also a certain amount of responsibility that goes along with being the landlord of a property.
Your tenant has to take care of the rent, council tax, phone/internet connection, TV rental and utilities charges, but YOU are liable for factoring and upkeep/maintenance costs.
You should also be aware that you'll need a Letting certificate from your local Council (the cost of this varies from Council to Council but averages around £60). This is to ensure your flat is habitable and complies with fire safety regulations. You'll also have to run through the fire drill with your tenant and supply a smoke alarm and fire extinguisher.
It's also a good idea to let the tenant know about cleaning services (in many flatted cases communal cleaning is organised by the Factor). It might also be prudent to advise your tenant on the number of a window cleaner and gardener (after all you want them to look after your property).
Myra Blaik, Operations Manager, Clear Group Scotland Ltd, said: "Many investors rightly do all the hard work and research prior to purchasing their property then sit back - once contracts have been signed and leases agreed - and believe the part they play is now over. Really, it’s only just beginning. Leasing property is like investing in any other business, it’s essential to keep your hand in and ensure the company runs smoothly.
"That means taking an interest in how your investment is doing such as ensuring the property is well-maintained and your tenants are fulfilling their lease conditions. For instance, you don't want a tenant moving a 'friend' in. Unfortunately, this happens frequently in student accommodation. You also want to ensure your tenants haven't done any 'unscheduled' re-decorating such as installing a shower, adding extra wall lighting or knocking down part of a wall (it has happened!). And God forbid - they haven't become an animal sanctuary and moved in ten cats!"
In addition, have you checked out who your tenants are and are you happy with them? If they're young party animals, do you really want your property to be the venue for loud, thumping music and up to 30 visitors every Saturday night? It goes without saying the neighbours wouldn't be happy. And really you want next door on-side, particularly if they're prepared to keep an eye out on your property and report any misdemeanours to you.
And, have you checked out your tenants' references? You want to make sure you’ll receive rent every month, regular as clockwork. Get references from previous landlords (if any) to see if your tenants have a good credit history and that they left the property in a decent state.
Check out your rights ie what you can do to remove a tenant if you're not happy with them (see the Clear Property Investment article How to Remove a Bad Tenant).
We've highlighted some of the things that can go wrong but on the whole investing in property and letting it out is a great way to maximise your income and doesn't cause too many problems. But be minded, YOU have to play an active part in your investment too. For, like many things in life, you’ll only get out what you put in...
Ends
Company registration number: SC344923
272 Bath Street, Glasgow, G2 4JR
