There are some important issues that landlords should be mindful of going into 2020 and beyond, from projections on rent and loan returns to mortgage rates, licenses and landlord rules.
Though in some ways 2020 could also be a difficult one for landlords, other areas should see strong capital growth and rising rents, meaning buy-to-let remains a stable investment path.
Below are the key things new landlords should take note of to avoid issues and remain successful.
1. Energy Efficiency Rules
The rules relating to energy efficiency is that more landlords will be forced to comply with the current minimum energy efficiency standard (MEES) legislation, allowing rental homes to have a minimum EPC rating.
Landlords of properties that do not comply with the law must take steps to save energy in their homes. This could be done in a number of small ways, such as installing more energy-efficient heating, white goods that use less energy and even energy-saving lighting.
2. Mortgage Interest Rates
Although mortgage and loan interest tax exemptions are being phased out, interest rates are still very low, and borrowing costs are correspondingly low. If your transaction to let mortgage agreement expires this year, spend some time finding a successful substitute plan.
Do not only walk to the closest high street lender – expert brokers are more likely to find a fair mortgage interest rate for you. Nevertheless, don’t rest on your laurels; interest rates cannot stay small for long.
3. Landlord Insurance
Things can go wrong at any time when it comes to renting out properties or owning a property. An urgent need to carry out expensive repairs may come up. In short, problems could occur outside your control as a landlord, for instance, natural disasters. That’s why it’s important to always have comprehensive landlord insurance in place.
Landlords insurance provides a range of policy choices, ranging from houses, furniture, legal fees and rent assurance, and you can pick the sort of cover that matches your needs. This is important as a traditional home insurance policy will likely not cover any damages brought around by tenants once a property has been let.
4. Electrical Safety Checks
Everything is pointed to the possibility that a compulsory 5-year electrical safety check will be put in place soon, so this is another area landlords will need to be aware of.
As a new landlord, you should consider having a complete electrical check performed on your property to avoid issues in the future.
5. Giving notice to tenants
Finally, as a homeowner, giving tenants notice can be something which you are likely to deal with. Notice can be served as per the lease agreement unless otherwise specified in the break clause.
In ordinary circumstances, you have to give a period of three months to evict a resident, but if there are issues, the letting agent can tell you otherwise. Take this advice, and you should be prepared to cope with whatever life throws at you as a landlord.
Being a landlord can be a lucrative and rewarding business to have as long as you are taking the proper precautions to ensure that you are meeting the necessary legal requirements.