Things to consider before letting accommodation in Bristol

The rental market in the UK is booming and therefore deciding to rent out accommodation in Bristol could be a good investment choice. Before you begin to look at potential investment properties, there are a number of things that you should consider in order to have the best chances of success.

From licences to legislation, becoming a landlord in Bristol can be confusing, so it’s important to look at what experts in property development like Lincoln Frost have to say before making any big decisions. Here are some of the most important things to consider before purchasing an investment property.

Budget

Clearly a key factor in the process is working out your finances, you need to think about how much you can afford to spend on a property before setting out to buy one. Important calculations involve how much rental income you can expect to earn, as this will be a main figure that is used to calculate how much you can borrow with a mortgage. Buy-to-let mortgages usually require a much bigger deposit than residential mortgages, for a buy-to-let you can expect to have to put down around 25% of the purchase price which can amount to a large amount of funds.

Tenants

Firstly, you need to have a clear idea of what type of tenant you want to attract, this will then impact the type of accommodation in Bristol that you will want to purchase. Are you looking for long-term residences for families, short-term holiday lets or maybe a flat for student accommodation? Whichever type of tenant you are looking for, you will need to research what requirements they look for in accommodation in Bristol. Once your property is on the rental market you need to find suitable tenants, to avoid having unreliable occupants of your property you will need to obtain references from previous landlords and also carry out credit checks to see if they are likely to be able to afford the rent.

Repairs

It’s your responsibility to maintain your property to a high standard. Before your tenants move in, carry out the necessary repairs to ensure everything works as it should. When carrying out repairs, consider how you would want repairs carried out in your own house. You wouldn’t want paint to be splashed all over the carpets and windows, for example, and you wouldn’t want taps to be leaking constantly. Leaking pipes in particular are an issue as not only will they increase water bills but they will also damage ceilings and foundations. Getting these repaired can be costly and you won’t be able to DIY, so take a look at house foundation repair companies to find the best one, and get the plumbing sorted as soon as you can to avoid more damage.

Licences

There is the chance that you will need a licence for the type of accommodation and location of the property that you are letting in Bristol. As an example, if you wish to rent out a house to a number of students, this would be considered a HMO and you would need a licence. A HMO is a house in multiple occupation, this means it is shared by a number of people who are not from one household and have shared facilities e.g. kitchen, bathroom etc. Similarly it can depend on where within Bristol your accommodation is, as certain areas require additional licences, you can check if this applies to your property on the Bristol City Council website.

Landlord responsibilities

Being a landlord is a big responsibility and you will have a duty of care to your tenants. This usually includes a number of strict rules and regulations that you must adhere to inorder to avoid getting into legal trouble. Some of these include but are not limited to:

• Fire safety regulations
• Gas safety regulations
• Energy performance certification
• Tenancy deposit schemes
• Right to rent legislation

Choosing to let out accommodation in Bristol can be a very lucrative and rewarding investment. Remember to undertake your own research before committing to buy an investment property.