Keeping Proper Records: The Key to Hassle-Free Letting

Bankers Arbuthnot Latham recently shared their top tips for letting property, and the first rule is not to skimp on record-keeping. Keeping accurate records of income and outgoings is crucial for managing administration, ensuring compliance, and protecting yourself in case of tenant disputes.

Well-organized financial records can save time, money, and legal trouble in the long run.

Financial Planning: Preparing for Vacancies and Unexpected Costs

Rental properties typically remain vacant for around one month per year. Good landlords prepare for this by keeping at least three months' rent in reserve to cover unforeseen gaps in income.

Beyond mortgage payments, landlords must also budget for additional costs, such as insurance, maintenance, and compliance with regulations. Failing to account for these expenses can lead to financial strain.

Deposit Handling: Avoiding Costly Mistakes

Handling tenant deposits correctly and legally is a must. Landlords who fail to follow deposit protection rules risk hefty fines. To protect both parties, landlords should:

• Conduct a detailed inspection before handover
• Create an inventory with photographs
• Provide a copy to the tenant before move-in

More details on deposit legislation can be found on GOV.UK.

The Importance of Regular Property Inspections

Carrying out regular inspections is essential to ensure the property is being maintained properly. It also helps landlords build relationships with tenants and gain insights into their future plans.

Proactive inspections can help landlords identify potential problems early, saving time and money in the long term.

Making Smart Investment Choices: Location, Yields, and Taxes

Before investing in rental property, landlords should take professional tax advice to understand allowances and liabilities.

Additionally, investors must:

• Calculate rental yields to determine profitability
• Research the local area for demand and rental trends
• Carefully vet agents and tenants to avoid unnecessary risks
• Choose the right insurance for the property, including coverage for void periods and tenant-related damages

How PlanetRent Simplifies the Letting Process

We think this is all great advice for landlords! However, at PlanetRent, we take things a step further by simplifying the rental process.

Our automated lettings platform helps landlords:

• Manage compliance easily
• Generate key documents automatically
• Streamline deposits, inventories, and record-keeping
• List properties on Zoopla and Rightmove for marketing

With no subscription required, there's nothing to lose. Try PlanetRent today and take the hassle out of letting!