Breaking Property Management Myths
Everyone seems to have an opinion about tenants, landlord and the best way to manage rented property. The truth is that everyone’s situation is different, and no two rental properties are the same. Here are some of the most common myths about rental property, and we’ll try to separate the fact from the fiction.
Landlords are Responsible for All Costs
It’s certainly true that landlords have to take responsibility for the big things in a property. If the boiler goes, or the roof needs replacing, the landlord should cover the costs. However, general wear and tear is down to the tenants. Landlords shouldn’t be paying for replacement lightbulbs, cleaning products, mowing the grass or any other routine maintenance. If tenants want to decorate to their taste, they will foot the bill. Landlords are also usually not liable for damage to the tenants’ possessions inside the property as it’s up to the individual tenant to be property insured.
Landlords Choose What To Do With the Deposit
This one certainly isn’t true any more. The law requires all residential landlords to store deposit money in a government-approved scheme. The idea behind these schemes is to stop rogue landlords disappearing with deposits, or failing to return them without good cause. If landlords want to deduct money from the deposit to cover cleaning or damage, they have to justify this to the scheme. If your landlord is unaware of their obligations or refuses to use the scheme, then alarm bells should be ringing. Reputable lettings agents and landlords know the rules and should stick to them. If your landlord is prepared to flout the law on protecting your deposit, what else might they be prepared to ignore the law about?
All Landlords are Rolling in Cash
Some landlords have made a lot of money in the rental sector and have multiple letting properties. Most landlords however aren’t in the rental business on that scale. Most have a full-time job in addition to their rental property. The majority of landlords only have one or two rental properties – large investors with a multi-million pound portfolio are the exception. It’s getting harder to make money on rented property too. Novice landlords often make mistakes paying too much for their property, or setting rental prices too low to keep money in reserve for emergency repairs. The best advice is to fully understand all costs and what potential profit you hope to make before agreeing a purchase.
The Law Favours Landlords
Many changes in the law in recent years have increased the burden on landlords and given tenants more rights than ever. Landlords who don’t maintain their properties and keep on top of issues such as gas safety checks are liable to be prosecuted. Tenants are also protected against illegal evictions. Although at the end of the day the landlord still retains ownership of the property, tenants shouldn’t think that they have no rights whatsoever. Charities such as Shelter are a great source of advice on all housing issues.
