Buy to let, is a whole new world of property, and going from owning a home yourself to a landlord can feel like a bit step, we’ve collated some top jargon busting explanations, on some the phrases you can expect to hear on your way to becoming a landlord!
The yield, is all about what you should expect to gain from your property through rent, this is calculated by the amount of annual rent you should expect to earn from your property, calculated through the price of the house, for example a £20,000 rental income on a £400,000 house is a 5% yield. A nice way of seeing in a simple way, the potential of each property you’re looking at.
Tenancy deposit protection
Something you’re most likely familiar with is paying a deposit on a rented property, however as a landlord this money involves far more responsibility for you.
The deposit your tenant paid must be paid into a tenancy deposit protection scheme, within 30 days of receiving the deposit (or you will receive a hefty fine)
This is all about protecting you and your tenant, the returned deposit at the end of the tenancy has to be agreed by you both, any dispute about amount can be retained in the account until resolved.
Your basic home insurance won’t be enough when you become a landlord, so specialist landlord insurance is required.
Obtaining a reference for your new tenant, is great way of getting an insight into the person you’ve trusted with your property, before they move in and get settled.
Paying for this can give you insight into their renting history, relationships with former landlords and employment information, among other important information.
There we are, a start to the jargon you’re going to come across as a new landlord, plenty more to learn, yet we all have to start somewhere.
Want some help and guidance, we’re here to help, get in touch today!