Top tips for first-time landlords 

Looking to become a landlord? Buying to let in London is extremely popular. In fact, London is home to the highest number of landlords in the UK, with over 463,200. Thanks to South London’s close proximity to the city centre, great transport links, open green spaces and village-like communities, it attracts a lot of prospective tenants who seek rental properties on the commuter belt.

However, becoming a landlord is no small decision. There are a number of factors to consider as a first-time landlord if you want a successful tenancy. Here are some of our top tips to get you started.

Know your market

Before entering the rental market, it’s a good idea to do some research so you know what to expect.

Researching similar properties in your area is a good starting point to gauge roughly how much rental income you can expect. In 2023, the average rental income for a property in South London stood at £13,095 – an increase of 34.7% since the same period in 2022. However, the rental market can be affected by any number of things – from local demand to interest rates to general economic outlook.

It’s important to consider how you position your asking price. Aim too high, and you could deter prospective tenants. Aim too low, and you could talk yourself out of significant income. A free property valuation will help to establish a reasonable asking price that is in line with your local area based on the condition of the property, amenities available, location and other contributing factors.

Prepare your property

Before being able to market your property, you will need to make sure it’s ‘tenant ready’. Whether it’s a new boiler, an extra lick of paint, fresh carpets or some more complex maintenance work – ensuring the property is in top condition will not only help to attract potential tenants, but also could increase the rental value of your property.

You will also need to consider how you want to let out your property – to furnish or not to furnish, that is the question. If you’re unsure which would be best for the types of tenants you want to attract, a lettings agent can help to advise on how best to position and prepare your property before putting it on the market.

Understand your responsibilities

Letting out your property is not the same as selling it – becoming a landlord brings a lot of responsibility. There are a number of basic legal requirements your property will need to adhere to, ensuring it is a safe and habitable living space for your tenants. These include:

• Annual safety checks on all gas appliances and fittings.
• Electrical installations are safe at the start of the tenancy, and inspected and maintained throughout.
• A minimum Energy Performance Certificate rating of ‘E’.
• Smoke alarms installed on every floor.
• Regular water system inspections.

If you are unsure what sits within your remit as a landlord, an experienced lettings agent can help to clarify your responsibilities, and ensure you comply with the necessary regulations for a safe and successful tenancy.

Create a welcoming space

For tenants, a rental property is more than just a lodging space – it’s a home. If you want to attract your ideal tenants, you need to decorate your property so that it is welcoming and homely. London sees a large number of properties for let, so how you present your property will be a key differentiator. It needs to offer a balance of durability, functionality and style.

• Offer a blank canvas for prospective tenants. Neutral tones help to open up the space and allow viewers to visualise the possibilities without making the property seem cold and clinical.
• Be practical with your décor. While style is obviously an important consideration, so is durability. Your property and its furnishings need to be able to withstand the wear and tear that tenancy can incur. Keep you target market in mind. If you are looking to market your property as a family home, you might want to consider easily washable surfaces and hard-wearing materials.
• Add a hint of personality. Prospective tenants will want to see a blend of versatility and character. They need to be able to picture how they can make the space their own, but also need to see the property’s own character to decide if it is a good match. Play with lighting, colour and architectural elements to assess what features you want to highlight as your property’s differentiator.

Get familiar with the numbers

We’re not saying you need to be a mathematical genius in order to become a landlord, but you can’t be afraid to get stuck into a few important numbers. Your rental yield will be the estimated annual return on investment from your property, while capital growth is the rate at which your property value increases or decreases.

There are also a number of necessary expenses involved with letting out a property which you will need to be familiar with to get an accurate idea of your potential return on investment. These include:

• Mortgage interest
• Agency fees
• Tenancy void periods
• Compliance inspections and documentation
• Insurance
• Maintenance and refurbishments
• Inventory inspections and professional cleaning
• Annual landlord income tax

Decide what level of support you need

As a landlord, you will have some options for the level of support you receive on your lettings journey. If you simply want help marketing the property and finding your perfect tenants, a lettings agent can make this process a lot smoother, leveraging their contacts and experience to find you an ideal match.

As soon as the contracts are signed and your tenants have moved in, it will be up to you to manage the tenancy. That means you will be responsible for collecting rent payments, organising inspections, dealing with tenant complaints or concerns and general maintenance of the property.

Alternatively, you can choose to outsource your property management to an experienced agent, who will take on a lot of the responsibilities involved in letting out your property. They can help to screen potential tenants, ensure legal requirements are consistently met, maximise rental income, and ensure rent is paid on time – taking the pressure off your shoulders.

Your local lettings and property management experts in South London

Thanks to South London’s proximity to the city centre, suburban lifestyle and cultural diversity, it remains a hugely popular destination for those looking to rent out a property. That said, it equally invites a large amount of competition within the lettings market. If you want your property to stand out in the market and attract the right tenants, our team can help.

Armed with decades of local experience and market knowledge, we offer personalised, dedicated support on your lettings journey – from marketing your property and screening tenants, to maintaining and managing your property for a seamless and successful tenancy.

Get in touch with our team to see how we can help: 020 3519 9121