Being a landlord can be a rewarding experience, but it is not without its hassles, say property management experts
Being a landlord can be a very rewarding experience. But, as North London estate and letting agent Paramount Properties acknowledges, it also carries the risk of falling foul of an ever-increasing amount of legislation not to mention a significant degree of hassle.
Here, we enlist the help of Denhan Guaranteed Rent to take a quick look at the A-Z of being a landlord in the capital…
Assured Shorthold Tenancy – Any new tenancy since 28 February 1997 is automatically an assured shorthold tenancy, unless the landlord serves a notice to say it is not to be an AST.
Buy-to-let – A property purchased with the specific intention of letting it out to paying tenants.
Checks – What landlords must carry out regarding a potential tenant’s immigration status
Deposit – The money paid by tenants as security against damage
Excuse – Used by tenants to explain the late payment of rent
Fire extinguisher – Required equipment for HMOs
Gas Safety – Landlords are legally responsible for the safety of their tenants and must get
gas appliances checked regularly by a registered engineer
Housing Act 2004 – Legislation that all landlords must comply with or risk significant penalties
Improvement Notice – Issued by a local authority if landlords fail to carry out repair work at a rental property
Joint tenancy – A form of agreement used to purchase a rental property with another party
Knotweed – The Japanese variety is the scourge of all property owners
Letting agent – Commonly used by landlords to find tenants and look after a rental property
Mortgage – Property loan often used to fund a buy-to-let investment
Noise – One of the most common reasons for the residents of neighbouring properties to complain about your tenants
Overstay – One reason to serve a Section 21 Notice on a tenant
Prescribed information – If a landlord issues a Section 8 Notice that fails to comply with prescribed information rules, a court will rule it is invalid
Quit (Notice to) – To end a shorthold tenancy, a landlord must give at least two months’ notice under Section 21 of the 1988 Housing Act
Rent – Source of a landlord’s greatest amount of hassle
Sub-letting – Another potentially costly problem for landlords
Tenancy deposit protection scheme – The law forces landlords to put deposits received from tenants in a TDPS if the property is let under an assured shorthold tenancy that started after 6 April 2007
Under-occupation – A landlord’s worst fear
Void period – Technical term for the time a rental property is not let out
Water – Commonly followed by the word leak
X-rated – Non-technical term to describe nightmare tenants
Yield – The annual net income a property generates, divided by its purchase price
Zone –Rental properties in Transport for London’s travelcard Zones 1 and 2 command the highest rents
Taking on the management of a buy-to-let property can turn into a full-time occupation, says Peach Properties. But by signing up to a guaranteed rent scheme for a period of up to five years, landlords hand over all the potential hassles, including collecting rent, finding tenants and void periods, while receiving a fixed fee paid directly into their bank account month.