In simple terms, a private landlord is an individual who decides to control the letting of their property alone, without the support of a property management company or letting agent. As you will be solely in charge, you won’t have to pay any fees to outsiders, which is why many people decide to become a private landlord.
Whether you have just started out, or you have been renting out properties for years, here are four reasons why you should become a private landlord.
Professional Landlord Vs. Accidental Landlord
Private landlords are split into two groups: professional landlords and accidental landlords. A professional landlord usually has a portfolio of properties and rents them out as a full-time business. Whereas, an accidental landlord usually becomes a landlord by circumstance, whether it’s by acquiring the property through family inheritance or moving into another home.
Some of the key responsibilities that a private landlord must carry out include marketing the property, finding and referencing tenants, setting the rental price, and creating tenancy agreements. If you have time on your hands and like to do everything yourself, becoming a private landlord is recommended over using a letting agent. You will need to make sure that your property is safe and secure for tenants such as by performing electrical testing. You can learn more at electricialsafetycertificate.co.uk who are there to make sure that the electrical installation meets regulatory standards. The company also offer fire alarm testing which must be carried out before finding tenants.
One of the main reasons why many people become a private landlord is so they can have total control over their property. If you use a letting agent or a property management company, there are all sorts of rules and regulations that you must adhere to. As a private landlord, you will have full control and have a tighter reign over your outgoings and in goings. Whether you own one property, or have a portfolio of homes, you will be responsible for every decision, from who lives in your home, to how much you charge.
Many private landlords believe that this route is cheaper than paying out for a letting agent to use their services. Should there be a problem with your property, you are in full control of who to send out to fix the problem for the tenant. If you use an agency, they will not only charge you for the cost of the work, but an additional fee to carry out the work for you. Also, you can never be too sure on whether you’re getting a good job done. Private landlords are in full control, knowing that the task has been completed properly, quickly, and cost effectively.
Easier to Build Relationships with Tenants
When letting your home out to tenants, it’s important to build a good relationship with them from the beginning. If you go down the route of using a letting agency, while they will do all the hard work for you in terms of finding and screening tenants, there is always the worry that they may cause problems further down the line. As a private landlord, getting to know your tenants and checking in once or twice a year to ensure everything is okay will make a big difference.
Another popular reason to become a private landlord is the long-term financial security. Once you’ve built strong relationships with your tenants, they’re far more likely to stick around and remain in your property. If you don’t know how to communicate effectively with tenants, they won’t feel valued and will look at other properties once their tenancy is up. Whether you’re paying off the mortgage on your main property, or you have dreams to retire early, letting your home out and getting a steady monthly income can put your mind at ease and help you pay off any debts.
If you like the idea of having total freedom and flexibility in what you do, becoming a private landlord is a no brainer.