If you are looking to become a new landlord and are venturing into buy to let for the first time, or are looking to expand your property portfolio, there is now more chance to find a great investment as property prices are cooling. Since there is a huge demand matched with a very poor supply in the Cambridgeshire area, as long as you buy correctly you can look forward to a minimum 5 – 6 % return as well as future capital asset growth.

If you’re considering diving into the private rental sector for the first time, here are 5 tips that as a new landlord you should know.

Tip 1: Being a landlord is not a ‘hands-off’ role

An investment property can be a great source of income and an excellent way to set yourself up for retirement. But being a landlord comes with legal and moral responsibilities. 

If you know nothing about what the 1988 Housing Act says, what HHSRS means, how the 2015 Deregulation Act affected landlords or how the Renters Reform bill will affect you, you need the help of a professional.

However, you need to remember not all lettings agent are regulated. Tip for finding someone who understands the legislation is to ask them about it. So make sure that you talk to agents that are a member of a professional body. It’s important to take the job of being a landlord seriously; otherwise, you could lose money instead of making it.

Tip 2: you need to be organised

As well as staying on top of maintenance and repairs, landlords must adhere to rules and regulations covering everything from safety checks to deposits. You are also a border guard, a general counsellor and potential marital advisor!

Successful landlords don’t leave things to chance; they have good systems in place to ensure things run smoothly. Therefore, you need to have a system in place to tell you when certificates need renewing, when you need to visit the property and, most importantly, a log of all the conversations you have with your residents. You will never know when you will have to refer to them.

Tip 3: play the long game

The property market will always have its ups and downs. To reap the benefits of your investment, it’s best to have a long-term strategy and not get too obsessed with short-term fluctuations. However, do keep an eye on rental rates in your area. Over the last 18 months the rental rates on Cambridgeshire have increased by 23% and this has only been sustainable due to the fact that wages have kept pace.     

Tip 4: keep things professional

Never rent a property to a friend or acquaintance, and always have a written contract. It can be tempting to let to someone you know, but things can get messy if you fall out. It’s best to have a little bit of professional distance between you and your tenant.

Tip 5: make sure you are covered

There are over 179 pieces of legislation that will affect you as a new landlord with more to come. The potential change of how you obtain vacant possession with the incoming Renters Reform Bill may mean that the court system will get involved (although they are talking about making things digital ). This being the case make sure your landlords insurance cover gives you what you need. Legal cover and rental guarantee cover will be needed more than ever.