Many factors have contributed to the recent boom in the rental market, but anyone considering entering the buy-to-let market needs to ensure they are aware of the myths that still surround the industry.
Mortgages are increasingly hard to come by, especially for first time buyers who struggle to scrape together the growing deposits necessary to secure one. As a result of this, the average age of an unassisted first time buyer is now 37.
It’s not surprising that landlords are seeing the dollar signs in front of their eyes in light of this news. However, caution is wise when thinking about becoming a landlords and let property insurance is an absolute must.
According to new research, many people think that landlords are able to ask tenants to leave with just a month’s notice. It is worth remembering that this isn’t the case and that two months notice must be provided. This is done by issuing a Section 21 notice.
As a landlord, you are not allowed to come and go as you please from your property when it is let. It is amazing how many landlords think they have the right to enter their property when they choose. In fact, the law stipulates that landlords must acquire the tenant’s permission before entering the premises. This permission must also be sought with at least 24 hours notice, so no last minute phone calls from the front door!
As a landlord, it is worth bearing in mind that if a tenant does not pay their rent, they can only be evicted through the courts if the eviction is happening before the end of a fixed-term tenancy. The process usually takes around four to five months.
It is clear that becoming a landlord does not come without risks. These can be minimised with a good landlord insurance policy.