Its been only a month since I completed on my first rental and already there are some important lessons I have learned as a landlord so far. I shared my thoughts on what I thought made a good landlord but since actually becoming one and finding a tenant within a few days of closing of the property, I have already learned so much. Since I made the decision to become a landlord, I have been reading up on the topic and whilst some topics you could say are common sense, others not so much as you need to be in the know.
Purchasing my first rental property within my catchment area is something I knew would work in my favour because of the great travel links to London and other cities as well as being close the 4 business parks. But the biggest thing I wanted to ensure with my first rental is that I could rent it to any young professionals because I remember how much I craved having my own space and the important lessons I have learned as a landlord so far I am combining together with my own experience as a tenant.
Disclosure: This is a collaborative post.
5 Important Lessons I have Learned as a Landlord
When I shopping for a buy-to-let property, I wanted one that would be accessible for anyone especially for those with mobility issues. I found a property where the design of it brings the bathroom and bedroom downstairs but the kitchen and living room upstairs and provides enough room if one was thinking about installing a stair lift. At first I wasn’t sure about this design but it has truly grown on me, somehow having the kitchen upstairs makes so much sense to me plus they get a little workout every day.
Becoming a landlord is something I had wanted to become since I purchased my own home, I had thought about possibly renting one of my rooms out but honestly I like my own space too much so got rid of that idea. Purchasing a rental property became the goal and as my tenant moves in only a couple weeks after I completed the purchase, I am now reflecting on the 5 important lessons I have learned as a landlord so far. I say so far because I am only one month one and I am sure in the next 12 months I will learn even more.
Get Homecare Cover
When I was renting one thing that I got annoyed with was how frequently our boiler broke down and this was because our then landlord refused to replace it and always called an engineer to fix it. I can’t imagine how much it cost him get that engineer out but homecare cover is super affordable and something that you need to have as a landlord. For my own home I ensure my boiler is checked regularly as no one wants to get surprises when its dead of winter and you have no heating in your home. As a landlord I need to ensure the boiler is always in good condition and the house is properly heated (+ventilated).
Register new build with street naming council
I don’t know why I didn’t think about this but somehow I thought when the builders are making these houses and getting permission from the council that they also register what will be the street address for the property. Well, I learned that it is my responsibility as a landlord to ensure the address appears in public searches and for that to happen I need to register with the ‘street naming’ department of the council. I also just thought telling Royal Mail would be sufficient but nope, they need the landlord to inform the council then the council to inform Royal Mail.
Having an Emergency Fund
An emergency fund is money you save on the side for unexpected emergencies that might arise in the future and if you don’t cashflow you will go into debt. Since becoming debt free many moons ago, entering into debt because I don’t have an emergency fund is not something I ever want to experience. I have shared on this blog tips on how to build an emergency fund and as a new landlord I realise the importance of having an emergency fund to cashflow any problems that the rental property might incur in the future.
Using a Management Company
One thing I knew even before I started looking to purchase a rental property is that I would want it to be fully managed by a management company (Estate Agents) because I know my current lifestyle would not permit me being there every second of the day to attend to any issues that might arise for the tenant. I know it would incur costs and the first month of my rental would be costly but they are still worth the investment. I realise that half of the stuff they have supported me with I wouldn’t have known to take care of on my own as first time landlord.
Some things you will have to do yourself
As much as I love the management company I am using, they have some truly expensive contractors working for them. For a 1-bed flat new build with barely ant scratch on it, I was quoted £210 to clean, my 3 bed 3 bathroom home costs £50 to clean, the cost was too much so I decided to do the cleaning myself. I realised that there are a few things that instead of paying someone to do, I could do myself, things like cleaning the house or clearing the gutter I can do. When a tenant moves out then I will get it professionally cleaned before the next one moves in but not this time round.
There are so many things I have learned since becoming a landlord but, these are the 5 important lessons I have learned as a landlord so far. I am excited to embark on this journey as a landlord and I hope that I have good tenants and I can be a good landlord to them using my own past experiences.
Angela Ricardo Bethea says
Those are some important points to keep in mind especially if you are a landlord. Thanks for sharing this informative post with us.
Ntensibe Edgar says
Hhhhmmmm…it’s nice to hear the perspective of a fresh landlady! Keep going…you will do wonders!
Mae says
I have never been a landlord, but I may be soon… These are great tips, thank for sharing these important lessons you have learned being a landlord. It comes in handy!
emman damian says
I think emergency fund is the most important one. Also, make sure that you register with your local city. Have insurance too!
Ramil Hinolan says
I will never be a landlord because of the many admin works to do. Better have the property listed in a rental website.
kidneyfornikki says
This is an important post for landlords. My husband tried to be a landlord but it was just the wrong time. We needed a management company but we were leaving town and ended up selling. Oh well. GOod luck to you! You are off to a good start!
Ivan Jose says
It’s important for other landlords to see this post. Our last landlord never had an idea on what to do when turning over the unit so it was quite a hassle for us to be the ones making the arrangements.
Eileen M Loya says
I am going to send the link to your article to my son. He and his girlfriend are thinking of putting up their condo unit as an Air BnB space. Your tips are very important. They have to make sure they follow your advice.
Dominique says
oh those are some great things! There is so much that goes into it!
Miranda says
Indeed, thanks so much for your comment.
Dr. Elise Ho says
A management company takes away the day to day work. It takes a chunk of your profit but can definitely be worth it.
Miranda says
It definitely is a chunk of profit but for the time it gives back its worth it.
Bryan Carey says
I have been a landlord once and these are good tips! If I do this again, it will likely be for Airbnb rental purposes.
Miranda says
I have actually been looking at Airbnb or holiday home as my next investment style property
Nicole Anderson says
My partner and I have owned rental properties for some time now and I like this list you have compiled. Having emergency funds as well as not managing the property yourself (staying at arms length) would be in our top 5 tips as well. Best of luck on your journey.
Miranda says
Thank you so much Nicole, definitely want to stay at arms length unless absolutely needed.
Leanne Wong says
Having homeowner’s coverage in place is so important when you own properties. You never know what’s going to happen.
Miranda says
Exactly and the reason why I took one out.
Brianne says
I can see how a management company would be a big help. Of course, they can’t do everything for you, but they can take a lot off your plate.
Miranda says
Definitely, they have been taking a load off my plate with so many moving parts.